FTC sues Uber over subscription sign-up, cancellation tactics

Uber One allows customers to save money on deliveries for a flat monthly fee. | Photo: Shutterstock

The Federal Trade Commission is suing Uber over its Uber One subscription service, accusing the company of using deceptive enrollment tactics and making the service hard to cancel.

Uber One allows members to save money on Uber rides and Uber Eats deliveries for a $9.99 monthly fee. 

The lawsuit, filed Monday in San Francisco, claims that Uber uses things like pop-up ads and checkboxes to invite customers to try Uber One for free and then begins automatically charging them at a later date. Fine print informs the customer of the price and billing date, though the suit alleges that they are actually charged before that date.

It also says that to cancel their subscription, customers must take “at least 12 different actions and navigate a maze of at least 7 screens.” And if they try to cancel within 48 hours of their billing date, the process involves “as many as 32 actions … [and] 23 screens,” as well as contacting Uber customer service.

And, it says, Uber’s promise of $25 in monthly savings with Uber One is false because it doesn’t take into account the $9.99 subscription fee.

The suit includes testimony from customers who said they were not even aware they were enrolled in Uber One until they discovered the $9.99 charges on their account.

It argues that these tactics violate the FTC Act, which prohibits “unfair or deceptive acts or practices in or affecting commerce.”

It is the latest effort by the FTC to rein in big tech companies, including third-party delivery apps. In December, Grubhub agreed to pay $25 million to settle FTC claims that it misled customers about delivery fees, among other practices.

That lawsuit was part of a widespread crackdown on so-called junk fees under President Joe Biden. The Uber suit represents one of the FTC’s first such moves under the Trump administration.

“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said FTC Chairman Andrew Ferguson in a statement. “The Trump-Vance FTC is fighting back on behalf of the American people.”

Uber said it was “disappointed” that the FTC took the action, and it denied the allegations. 

“Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law,” the company said in a statement. “Uber does not sign up or charge consumers without their consent, and cancellations can now be done anytime in-app and take most people 20 seconds or less.”

Uber One has become a key part of Uber’s growth. For the last quarter of 2024, the company said that signups had increased 60% year over year.

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