(NewsNation) — The Federal Trade Commission has filed a lawsuit against Uber, saying it used deceptive billing and cancellation practices tied to its subscription service.
The rideshare and delivery company has a subscription service for $9.99 per month called Uber One, which offers discounts on fees associated with the app’s features.
The FTC said Uber falsely claimed that users would save $25 through the service, charged customers before their billing date and made it difficult for users to cancel the service despite its “cancel anytime” promises.
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“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” FTC Chairman Andrew N. Ferguson said in a statement. “The Trump-Vance FTC is fighting back on behalf of the American people.”
In its lawsuit, the FTC alleged the company’s practices violate the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), requiring online retailers to clearly explain the terms of the service they are selling, get consumers’ consent before charging them for a service and make it easy to cancel a recurring subscription.
Uber has been hit with lawsuits in the past, settling a recent one filed by the DOJ in 2022 when the Justice Department alleged the company was discriminating against customers with a disability by charging “wait fees” when they needed more time to get in a vehicle due to their disability.
