FTC Sues Over Uber One, Saying It 'Deceived Consumers'
The Federal Trade Commission is suing the rideshare company Uber for what it's calling deceptive business practices with its Uber One subscription service. In its complaint filed in a San Francisco district court, the FTC cites instances where customers say they were charged for the service when they believed their subscriptions were canceled or were not allowed to cancel their accounts easily.
Uber One costs $10 a month and allows users to get discounts, free delivery on Uber Eats and cash back, in addition to other perks.
But the FTC says that customers who sign up for free trials have had a difficult time canceling and have ended up with unexpected charges.
"Today, we're alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel," FTC Chairman Andrew N. Ferguson said in a press release.
The complaint cites instances where it would take 23 screens and 32 actions to cancel an Uber One subscription.
An Uber spokesperson said that the company does not sign up or charge consumers without their consent and that "cancellations can now be done anytime in-app and take most people 20 seconds or less."
"We are disappointed that the FTC chose to move forward with this action," an Uber spokesperson told CNET, "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."
In an email, Uber contested points in the FTC's complaint, saying that they disclose information to users about what customers will be charged and insisting, "Consumers who canceled were never charged additional fees."
Subscription services have been a target for the FTC recently as it has implemented rules requiring companies to make them simpler and easier to cancel. Last year, California passed a law requiring it be as easy as a single click for consumers. The changes were in large part enacted to combat increasingly sophisticated ways that companies were keeping customers on the hook for paid services.
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