Credited from: FORBES
The U.S. Federal Trade Commission (FTC) has filed a lawsuit against Uber Technologies, alleging the company engaged in deceptive billing and cancellation practices related to its subscription service, Uber One. The lawsuit, filed on Monday in the U.S. District Court for the Northern District of California, claims Uber enrolled customers in the service without their consent and falsely advertised potential savings of approximately $25 a month, not including the subscription fee of $9.99, according to Reuters.
Furthermore, the FTC's complaint highlights that Uber’s cancellation process is deliberately complicated, requiring users to navigate up to 23 screens to unsubscribe. This difficulty contradicts Uber's marketing of the service as "cancel anytime," according to India Times.
FTC Chairman Andrew Ferguson stated, "Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel," underscoring the commission’s commitment to protecting consumer rights, as reported by The Hill.
In response, Uber has expressed disappointment over the lawsuit and maintains that its sign-up and cancellation processes are clear and compliant with legal standards. Uber spokesperson Noah Edwardsen emphasized that the company does not enroll customers without consent and that cancellations can typically be completed in under 20 seconds through the app, as explained in a statement to Business Insider.
The legal action reflects ongoing scrutiny faced by tech companies over consumer protections and fair business practices, as noted in the FTC's broader efforts to regulate monopolistic behaviors in multiple sectors, according to Forbes.