FTC lawsuit: Uber made it too hard to cancel Uber One subscriptions
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter.
The Federal Trade Commission filed a complaint Monday against Uber in federal court over the tech giant's Uber One subscription program, alleging Uber concealed subscription information from consumers, signed consumers up without their consent, charged them too early and made it exceedingly difficult to cancel a membership.
The FTC said such tactics violated the Federal Trade Commission Act and the Restore Online Shoppers' Confidence Act.
The commission is seeking a court injunction that would bar future violations of those acts, as well as monetary relief deemed appropriate by a court. Uber disputed the FTC's accusations.
The FTC claims Uber promised consumers savings of $25 per month without including the cost of subscription to Uber One in its calculations, according to a press release announcing the complaint.
The commission alleges that some consumers were enrolled in the subscription program without their knowledge. The complaint quotes one consumer: 'I don[']t have an UBER account and NEVER have but I am being charged a monthly recurring fee of $9.99 for UBER ONE. I don[']t even know how they got my debit card info.'
Uber disputes this claim.
'Uber does not sign up or charge consumers without their consent,' an Uber spokesperson wrote in an email to Restaurant Dive.
The regulatory body claimed that Uber One users trying to cancel subscriptions sometimes have to navigate as many as 23 screens and take 32 discrete actions to cancel the service, which offers free delivery on orders above a certain minimum, among other possible savings.
In response, Uber claimed 'the majority of cancellations occur in-app and take 20 seconds or less.'
The complaint also alleges that some consumers were billed before a billing date Uber indicated in the app.
An Uber spokesperson wrote: 'Uber One's standard sign-up flow shows material disclosures on the same screen as the option to choose payment method, including that the consumer will be charged on a recurring basis to a payment method on file at Uber, and that they can cancel up to 48 hours in advance of their next billing date to avoid charges.'
FTC Chair Andrew Ferguson said in the press release that 'Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel.'
Uber first launched Uber One in 2021 as a way to incentivize consumer loyalty to the platform offering discounts on rides and deliveries. By early 2023, 40% of orders on Uber Eats came from Uber One members, and the service was an important driver for the company. As of Q4 2024, the subscription program boasted 30 million members.
DoorDash, which leads Uber Eats in delivery market share, has a similar program called DashPass. The perks and price points of these services are an important point of competition between the two giants, which control the lion's share of the U.S. third-party delivery market.
Recommended Reading
Uber sues DoorDash over alleged anti-competitive practices
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
A study shows Waymo is more expensive than Uber and Lyft, but some people are willing to eat the extra costs
Waymo's robotaxi competes with Uber and Lyft in some markets, including San Francisco. One study comparing about 90,000 prices found that the average ride in a Waymo is more expensive. Most people prefer the Waymo experience, but factoring in extra costs tells a different story. Waymo's robotaxi rides are more expensive than Uber and Lyft rides, but some people are still willing to pay the extra costs, a new study found. Obi, a rideshare price comparison platform, published a study that compared about 90,000 "offer records" — or quoted prices — between March 25 and April 25 in San Francisco. The platform compared prices between Waymo, UberX, and Lyft Standard. The study found that the average price of a Waymo ride is $20.43, which is $5.99 more than an average Lyft ride and $4.85 more than an average Uber ride. The average price of a Lyft was $14.44, while the average price of an Uber was $15.58." "Waymo rides cost 41% more than Lyft and 31% more than Uber on average when comparing pricing at the same time and across the same routes," the study said. The study also looked at price differences during peak hours. It found that during the evening rush hour between 5 p.m. and 6 p.m., a Waymo was about $11 more expensive than Lyft and nearly $9.50 more for an Uber. That Waymo is more expensive than Uber and Lyft is consistent throughout the entire day, with the smallest price gap occurring at around 5 a.m., the study said. Still, some people appear to be willing to bite the extra couple of bucks. Obi also distributed a consumer sentiment survey about Waymo to about 500 people, focusing on California and Phoenix, where robotaxis are available. A majority of respondents — about 70% — said they prefer "the experience of Waymo vs a regular rideshare with a driver," according to the study. When costs become a factor, 42.7% of respondents said they'd be willing to pay more, but it would depend on how much more it would cost. Around 16.3% of respondents said they'd pay up to $10 more, while 10.1% of respondents said they'd pay up to $5. Another 16.3% of respondents said they would only pay less than $5. Meanwhile, 39.1% of respondents said they would only pay the same or less for a Waymo and 26.8% of respondents said they wouldn't take one at all. While the study doesn't factor in tipping to the final cost of an Uber and Lyft, 26% of respondents said that they prefer Waymo because they don't have to leave a tip. Some Waymo fans who have previously spoken to Business Insider point to this flexibility and the overall experience of having a car to themselves. "Waymo is simply a better value," Kevin Hartz, a VC and early Uber angel investor, told BI back in February. Data published by the California Public Utilities Commission showed that the take-up by riders has quickly grown in the few years Waymo began to offer paid rides. In August 2023, the number of paid rides for the month was 12,617. By March 2025, the number increased by more than 5,500% to 708,180 rides. Waymo said in May that it has now provided more than 10 million paid rides across its operating cities in Phoenix, San Francisco, Los Angeles, and Austin. A spokesperson for Waymo, Uber, and Lyft did not respond to a request for comment. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
2 Reasons Saving Less Is the Secret To Building Wealth, According to Ramit Sethi
While focusing on saving can seem safer than potentially losing money in mutual funds, stocks and bonds, finance expert Ramit Sethi believes that this approach could leave you broke. Learn More: Consider This: A 2024 report by Janus Henderson Investors found that 48% of Americans had no investments. While some people cited a lack of investment expertise, the need to pay off debt or limited financial means as the reason, 38% simply preferred putting cash in regular bank accounts. In a recent YouTube video, Sethi explained why you should save less and instead invest your money smartly. While you might think you're making progress by saving money, you'll eventually find yourself off track from your retirement goal, even if you contribute a large sum each month. First, a typical savings account usually earns a much lower rate than the average investment return, so your money grows much more slowly. Then, there are hidden factors you might forget, like taxes and inflation, that lead to being unable to buy as much with your savings. Sethi gave an example of someone who spent 30 years stashing away $1,000 each month. Federal Deposit Insurance Corporation data showed the national average savings account rate was 0.42% in May 2025, while Sethi said the historical average annual investment return (after inflation) was 7%. According to Sethi, the person who saved would have around $383,000 after 30 years, compared to nearly $1.2 million for the investor. So, the saver would have missed out on about $817,000. Sethi added, 'This is the difference between struggling to retire at 65 versus becoming a millionaire before 50.' Explore More: The annual inflation rate reported in April 2025 was 2.3%, which was 1.88% more than the 0.42% average savings account rate. So, while your savings balance looks like it's growing each year, inflation is likely robbing you of some of your money's value. For example, if you had $1,000 in your savings account, you might earn $4.20 over the year, but lose $23.00 to inflation. So, your money's purchasing power would have gone down by $18.80, meaning you're not really getting ahead. Sethi explained that many people mistakenly believe that saving is the safe and virtuous route, but as the example showed, it actually makes it harder to grow money efficiently. He said, 'In order to build wealth, you have to go way beyond saving, and you have to invest.' While still saving cash for emergencies and upcoming purchases is smart, prioritizing investing is a better approach for preparing for retirement and building wealth. Sethi discussed how you can invest without making it complicated, and suggested ways to come up with more cash to contribute. First, he recommended a three-step strategy of taking advantage of 401(k) matches, contributing to a Roth IRA and buying target-date funds. This combination gives you free money from your employer, tax advantages and simplicity. To ensure you stay on track, Sethi suggested automatically transferring 5% of your pay to both your 401(k) and Roth IRA accounts. Then, you should set up automatic target-date fund purchases so you don't forget them. Finally, Sethi said you should take three steps to get more money rather than focus on cutting expenses, which will eventually come to a limit. These include asking for a higher salary, taking on a suitable side gig and focusing on gaining and improving valuable skills. Sethi explained, 'If you focus on earning more, you will give yourself a massive advantage in building your rich life.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 Clever Ways To Save Money That Actually Work in 2025 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on 2 Reasons Saving Less Is the Secret To Building Wealth, According to Ramit Sethi Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Yahoo
Father's Day hits record sales high
With Father's Day just around the corner, Americans are projected to spend a record $24 billion on dads and father figures this year, per survey data from the National Retail Federation (NRF) and Prosper Insights & Analytics. That's up from $22.4 billion in 2024 and the prior peak of $22.9 billion in 2023. Shoppers plan to shell out an average of $199.38 per person, nearly $10 more than in 2024, with the 35–44 age group leading the charge at an average of $278.90. Father's Day gifting is evolving: while 58% of consumers still buy greeting cards, many are opting for more meaningful presents. 55% will purchase clothing, 53% special outings, and 50% gift cards. Experience-driven gifts continue to gain momentum: 43% plan subscription boxes (up from 34% in 2019) 30% intend to give experiences like concert tickets (up from 23% in 2019) 'As consumers prioritize Father's Day gifts that are unique or create special memories, categories such as special outings and personal care items have seen an increase in popularity this year,' said Phil Rist, EVP of Strategy at Prosper. 'A special outing offers an opportunity to create new memories and celebrate together, while a personal care item allows dad to feel pampered.' Online shopping continues to lead, with 41% of purchases made digitally. Department stores follow at 35%, discount and specialty stores at 23–22%, and 19% shop in local or small businesses. 'Americans are embracing meaningful traditions and holidays, and this Father's Day, spending on gifts and other holiday items is expected to reach record levels,' said Katherine Cullen, VP of Industry and Consumer Insights at NRF. 'As consumers look to recognize the father figures in their lives, retailers are prepared with gift ideas, special deals and convenient shopping options to help customers find the right gifts.' Held on Sunday, June 15, Father's Day 2025 will likely mark a milestone for both heartfelt celebrations and retail success.
