The U.S. Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the company of deceptive billing and subscription cancellation practices. 

The consumer watchdog claims that Uber charged customers for its Uber One service without obtaining proper consent and made it unnecessarily difficult for users to cancel their subscriptions.

FTC Chairman Andrew Ferguson, appointed under former President Trump, expressed in a statement that the commission is acting to protect American consumers. 

Uber has denied the allegations, stating that it is "disappointed" by the FTC's decision to pursue legal action.

The Uber One service, which was launched in 2021, offers benefits such as no-fee delivery and discounts on certain rides and orders. It is available for $9.99 a month or $96 annually. 

According to the FTC's complaint, users found it challenging to cancel the service, facing as many as 23 screens and 32 actions in the process.

Uber responded, stating that subscription cancellations can now be done in just 20 seconds via the app, with no need to contact customer support. Previously, users had to cancel within 48 hours of their next billing cycle, but that policy has since changed.

The FTC also alleges that some users were enrolled in Uber One without their consent, including one person who claimed to be charged despite not having an Uber account. Uber maintains that it does not sign up or charge customers without their approval.

This lawsuit marks the FTC's first legal action against a major U.S. tech company since President Trump began his second term. 

Meanwhile, the agency’s case against Meta (formerly Facebook) is currently in its second week of trial, addressing concerns over the company's alleged monopoly following its acquisitions of Instagram in 2012 and WhatsApp in 2014. Meta has criticized the FTC's legal stance, which it claims is misguided.

Source: BBC

BDST: 1201 HRS, APR 22, 2025
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