Uber faces ‘major problem' with its subscription service in US
The US Federal Trade Commission (FTC) has filed a lawsuit against cab-hailing platform Uber. The lawsuit filed in the US District Court for the Northern District of California accuses
Uber
of using deceptive billing and cancellation practices for its Uber One subscription service. According to the complaint, Uber enrolled consumers without consent, misrepresented and promised savings, and erected obstacles to cancelling, even though it marketed Uber One as a 'cancel anytime' service. The FTC highlights that these practices violate the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA). The lawsuit seeks a permanent injunction along with monetary relief for affected users. However, Uber has disputed the allegations and has claimed that its sign‑up and cancellation processes are clear, transparent, and legally compliant.
What Uber said about FTC lawsuit
In an email sent to CNBC, Noah Edwardsen, an Uber spokesperson, said that the company was 'disappointed' by the FTC's complaint but remains confident about the court's ruling being in its favour.
'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,'
Edwardsen said.
What US FTC said about Uber One subscription service
In its complaint, the FTC accuses Uber of advertising 'savings of $25 a month' without factoring in the cost of the membership. The agency also alleges that Uber charged some consumers before their scheduled billing dates
The FTC further argues that cancelling an Uber One subscription is made 'extremely difficult,' with some users told to contact customer service representatives who are unreachable. Several members reported being billed for an additional cycle despite cancelling their subscriptions, the complaint states.
In a statement, FTC Chair Andrew Ferguson said:
'Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel. The Trump-Vance FTC is fighting back on behalf of the American people.'
Introduced in 2021, Uber One is priced at $9.99 per month or $96 annually and includes benefits such as fee‑free delivery and discounts on eligible ride bookings, delivery, and pickup orders. According to Uber's latest annual report, the service's member base reached 30 million in December 2024.
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