FTC Sues Uber Over Subscription Sign-Up Tricks, Difficult Cancellation Process

The Federal Trade Commission is suing Uber for allegedly tricking users into signing up for its $9.99-per-month Uber One subscription service. 

Uber made it “unreasonably difficult” for affected users to cancel the subscription, according to the complaint. “Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” FTC Chairman Andrew Ferguson said in the announcement. 

Uber is accused of “deceptive billing and cancellation practices,” and breaking a law that requires providers to obtain consent before charging users for a service.

Launched in 2021, Uber One drops delivery fees on Uber Eats orders and offers discounts on ride-hailing for $9.99 per month or $96 per year. However, the FTC’s 44-page complaint alleges that Uber enrolls users through push notifications, pop-ups, and in-app ads that encourage people to claim an Uber One offer or “wrongly promise savings” benefits, the FTC says.

(Credit: FTC/Uber)

But the Commission contends that Uber has been signing up users for the subscription service without making it clear that they’ll need to pay up.

“Once consumers click ‘Start saving,’ they are immediately enrolled in Uber One and will be charged every month or year for a subscription,” the FTC said of one example. “The only other choice is to ‘Cancel.’ It is unclear what tapping that button would cancel at this point – it could be the delivery or ride they are trying to book; they have not signed up for Uber One and thus could not cancel it”

Some users were also allegedly signed up for Uber One through the company’s partnerships with credit card companies. “Consumers report finding Uber One charges on their credit card bill despite never knowingly signing up for an Uber One subscription at all,” the FTC says. “For example, one consumer said, ‘Uber is charging me for Uber [O]ne and I did not sign up nor gave them credit card info,’ while another consumer related that, ‘Uber One has been charging my bank account for $9.99 a month without my consent or me subscribing.’”

(Credit: Uber/FTC)

The other issue is that Uber can add an extraordinary number of steps to a “time-consuming” cancellation process, which can sometimes be hidden, the FTC alleges. If a consumer wants to cancel Uber One with 48 hours of the billing date, the Commission found that a user can be required to “take as many as 32 actions and navigate as many as 23 screens” before being forced to contact customer service. 

Uber is refuting the allegations. The company told PCMag: “We are disappointed that the FTC chose to move forward with this action, but are confident that the courts will agree with what we already know: Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law.

“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,” the company adds.

Uber also noted it hired two former FTC commissioners, including Christine Wilson, to act as counsel while the US regulator investigated Uber’s business practices. “The unconventional nature of the rushed investigative process that preceded this enforcement action was compounded by the addition of new and unvetted allegations at the last minute,” Wilson says. “It is disappointing to see the FTC stray from the rigor and fairness that has long defined the agency at its best.”

About Michael Kan

Senior Reporter

I’ve been working as a journalist for over 15 years—I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017.

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