Uber One Subscriptions: FTC Files Deceptive Practices Lawsuit

If you’re struggling with how to cancel your Uber One subscription, you’re certainly not the only one facing this issue. The U.S. government has recognized this widespread concern.

On Monday, the Federal Trade Commission (FTC) filed a lawsuit against the rideshare and delivery giant Uber, accusing the company of engaging in what they describe as “deceptive billing and cancellation practices.” These allegations specifically focus on Uber’s premium subscription service, Uber One, which has drawn significant scrutiny.

“I noticed a charge of $9.99 for an Uber One account on my credit card bill for the last 8 months, and I have never signed up for this service,” said one frustrated customer, highlighting a common complaint mentioned in the lawsuit. Another user expressed, “I don[’]t even have an Uber account, yet I find myself being charged a recurring monthly fee of $9.99 for Uber One. I’m baffled as to how they acquired my debit card information.”

Understanding the FTC’s Lawsuit Against Uber: Key Allegations Unveiled

Uber promoted Uber One as a premium subscription service costing $9.99 per month, promising customers exclusive benefits that included substantial savings on rides and deliveries. However, the FTC contends that the ride-hailing company misled consumers regarding the nature and extent of these savings.

“Consumers are increasingly frustrated with being unknowingly signed up for subscriptions that are nearly impossible to cancel,” stated FTC Chairman Andrew N. Ferguson in a press release. “In this case, we allege that Uber not only misled consumers about their subscription benefits but also made the cancellation process unreasonably complicated.”

For instance, Uber claimed that members could save $25 monthly by using their Uber One subscription. The FTC has challenged this assertion, indicating that the company failed to account for the $9.99 monthly fee when advertising these supposed savings.

“These savings claims are misleading,” the government’s lawsuit states. “Many consumers do not actually save $25 a month by utilizing Uber One…Uber’s advertising of savings assumes that the subscription is free; the stated savings do not deduct any associated costs.”

The issues concerning Uber One extended beyond mere false advertising. The lawsuit also pointed out that while Uber claimed users could cancel their subscription “at any time” without incurring additional fees, in reality, the FTC found that Uber frequently billed customers even before the end of their free trial period. Furthermore, the cancellation process was far more complicated than suggested.

Seamless Signup Process Masks a Complicated Cancellation Journey

The lawsuit alleges that Uber employs deceptive practices commonly referred to as “dark patterns” to entice users to sign up for their services while simultaneously making the cancellation of Uber One subscriptions exceedingly difficult.

The FTC highlights that users could easily sign up, but cancelling their subscription often required navigating through up to 32 different actions.
Credit: FTC

In the Uber app, prompts encouraging users to “Start saving” or “Try for free” automatically enrolled them in a trial, as indicated in the lawsuit. In a particular scenario, users were only given two choices: “Start saving” or “Cancel.” The complaint from the government states, “Once consumers click ‘Start saving,’ they are instantly enrolled in Uber One and will incur monthly or yearly charges for the subscription. The only alternative is to ‘Cancel.’ However, it remains unclear what cancelling would actually stop at this point — it could be the delivery or ride they are trying to book; they have not consented to enroll in Uber One and therefore cannot cancel it.”

When customers genuinely attempt to cancel their subscription, the FTC notes that “Uber makes it exceedingly challenging.”

According to the FTC, users of Uber were “forced to navigate” a convoluted process that involved multiple steps just to cancel their paid Uber One plan. The cancellation procedure could involve over 23 different screens and require users to complete up to 32 separate actions to finalize their cancellation. Alarmingly, the closer a user was to the end of their subscription, the more difficult Uber made it to cancel.

“Uber can compel users to provide a reason for their cancellation, pressure them to pause their membership, or, if those attempts fail, present them with offers to continue their subscription,” states the FTC.

Some users found themselves compelled to reach out to Uber’s customer support to cancel, yet they were not provided with straightforward contact information for the company. Additionally, many users reported being billed for their subscription during the cancellation process, as highlighted by the government.

Legal Charges Against Uber: What Are the Implications?

The FTC is accusing Uber of five violations under Section 5 of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), which include misrepresentation and unfairly charging consumers without their consent.

In a response shared with Mashable, Uber refutes any claims of wrongdoing.

“We are disappointed that the FTC has chosen to proceed with this lawsuit, but we are confident that the courts will agree with our understanding: the sign-up and cancellation processes for Uber One are straightforward, transparent, and compliant with both the letter and spirit of the law,” stated an Uber representative. “Uber does not enroll or charge consumers without their explicit consent, and users can now cancel their subscriptions directly within the app in under 20 seconds.”

Uber also mentioned that previously, users were required to contact the company to cancel their Uber One subscription if they were within 48 hours of their renewal period. However, the company has since revised this policy, allowing users to cancel their subscriptions at any time directly within the app.