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Miami Herald
23-04-2025
- Business
- Miami Herald
Uber slammed with lawsuit over alleged deception
Uber has become one of the most used in-app ride and delivery services in the U.S. Since launching in 2009, it quickly grew a huge presence in 70 countries worldwide and has around 171 million monthly active users. To incentivize customer loyalty and maintain its continuous growth, Uber released Uber One in 2021, a paid membership program that rewards customers with savings and exclusive perks when using its app for rides and food delivery for a subscription cost of $9.99 per month or $99.99 per year in the U.S. Some of the perks and savings include $0 delivery fees, credits to use on rides and orders, and exclusive discounts and deals. Don't miss the move: Subscribe to TheStreet's free daily newsletter This subscription service has reached 30 million members, representing a 60% growth year over year as reported in the company's fourth-quarter earnings for fiscal 2024. Related: Popular delivery service makes harsh decision amid struggles Although Uber has built its loyalty business at an unbelievable rate, recent accusations, if substantiated, might leave the company owing monetary restitution. Image source:The Federal Trade Commission filed a lawsuit against Uber (UBER) on April 21, claiming the company charged customers for Uber One subscriptions without their consent, didn't follow through with promised savings, and failed to fulfill its cancellation promise by making it difficult for users. Related: Popular online retailer CEO spotlights trade war solution "Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel," said FTC Chairman Andrew N. Ferguson. "The Trump-Vance FTC is fighting back on behalf of the American people. Today, we're alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel," he added. The FTC's complaint, filed in the U.S. District Court for the Northern District of California, alleges that although Uber offers a free trial that can be cancelled anytime with no charge during the trial period, some customers were automatically charged for the following month before the trial ended. When trying to cancel, the complaint claims that Uber made it extremely difficult, forcing customers to navigate up to 23 screens and take as many as 32 actions. During the cancellation process, Uber also requires customers to explain why they want to end their subscription, encourages them to pause it instead, and gives them more offers as an incentive to stay. If all cancellation efforts failed, some users claimed they were told to contact customer support but were given no contact information, and others stated they were charged for another month while awaiting a reply from customer support. If the alleged claims are substantiated, Uber would be found in violation of the FTC Act and the Restore Online Shoppers' Confidence Act (ROSCA). These acts require online retailers to clearly disclose the terms of their services, obtain consumers' consent before charging them for it, and provide an easy cancellation process for a recurring subscription. More Retail News: Walmart rivals Target beauty expansion with unexpected launchTarget issues concerning recall on baby productStarbucks to unveil a surprising, first-of-its-kind store The FTC seeks an end to future violations by the company and monetary restitution as deemed appropriate for the acts. The court will decide the case in the upcoming days. If Uber is found in violation, it could have negative financial repercussions for the company. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
22-04-2025
- Business
- Yahoo
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.
Time of India
22-04-2025
- Business
- Time of India
FTC sues Uber, alleging it signed up Uber One subscribers without their permission
The US Federal Trade Commission filed a lawsuit against Uber on Monday, alleging that it enrolled consumers in its Uber One subscription programme without their consent and made it too difficult for them to cancel the service. Uber One members pay $9.99 per month or $96 per year for a range of services, including fee-free Uber Eats food deliveries and cash back when they take Uber rides. In its lawsuit, the FTC said multiple customers complained that Uber signed them up for Uber One without their permission or charged them for the service before a free trial period was over. In at least one case, a person was charged $9.99 per month even though they didn't have an Uber account, the lawsuit said. The FTC said Uber also made it extremely difficult for subscribers to cancel Uber One . The agency said Uber requires customers to take at least 12 different actions on at least seven screens to cancel the service. Cancellation gets even harder for consumers within 48 hours of their billing date, the FTC said, requiring them to navigate as many as 23 screens and still contact customer service. "Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel," said FTC Chairman Andrew N. Ferguson, who has led the FTC since January after he was tapped as chairman by President Donald Trump . In a statement, Uber said it was disappointed that the FTC chose to move forward with the lawsuit. Uber said its sign-up and cancellation process is clear, simple and lawful. "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," Uber said. Uber said at one point it did require customers to contact a service representative if they wanted to cancel within 48 hours of a billing period, but that is no longer the case.
Epoch Times
22-04-2025
- Business
- Epoch Times
FTC Sues Uber Over Alleged ‘Deceptive Billing and Cancellation' Policies
The Federal Trade Commission (FTC) filed a lawsuit against rideshare company Uber, accusing it of misleading customers, the agency said in an April 21 The FTC alleged that the company 'charged consumers for its Uber One subscription service without their consent, failed to deliver promised savings, and made it difficult for users to cancel the service despite its 'cancel anytime' promises.' Uber's 'deceptive billing and cancellation practices' violate the ROSCA requires online retailers to clearly disclose service terms, secure customers' consent before charging them for a service, and offer a simple way to cancel any recurring subscriptions. 'Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,' FTC Chairman Andrew N. Ferguson said. 'The Trump-Vance FTC is fighting back on behalf of the American people.' The Related Stories 4/16/2025 4/5/2025 Uber dismissed the FTC allegations in an emailed statement to The Epoch Times. A company spokesperson said Uber does not sign up or charge customers without obtaining consent and that subscriptions can be canceled anytime via the app, taking 20 seconds or less for most people. The lawsuit charged Uber with a count of misrepresentation, alleging that the company 'directly or indirectly, expressly or by implication,' indicated to customers that they could cancel subscriptions at any time without incurring any additional costs. 'Consumers cannot cancel at 'any time' without being charged additional fees,' the complaint alleged. The Uber spokesperson said this process has been changed. In the earlier instance, customers who wanted to cancel within 48 hours of their next billing period were required to contact support to proceed with cancellation. 'This is no longer the case; consumers can now cancel in the app at any time, and we have refunded customers who had reached out to Uber Support to cancel within 48 hours of their next billing period,' the spokesperson said, adding that 'consumers who canceled were never charged additional fees.' The FTC said Uber failed to 'clearly and conspicuously disclose' all material terms to customers before obtaining their billing information. This includes disclosures such as enrollment in a recurring billing plan, the method of cancellation, when they will be billed and charged, and the amount of money users save by subscribing to the Uber One service. The company spokesman said Uber's sign-up for the One subscription '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.' Customer Complaints The FTC gave multiple examples of Uber allegedly misleading customers. For instance, when customers sign up for the One service, they are 'wrongly promised' savings of $25 per month, it said. The company does not take into account the cost of a subscription, which can be up to $9.99 per month, when calculating savings, the FTC said. Many customers said they were enrolled in the One service without consent, with one person saying they were charged even without having an Uber account, the FTC alleged. Uber allegedly made it 'extremely difficult' for customers to cancel subscriptions, forcing users to navigate up to 23 screens and take up to 32 actions to cancel. The Uber spokesperson said the company was 'disappointed that the FTC chose to move forward with this action' but believes that the courts will side with the company. 'Uber One's sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law,' the spokesperson said.
Time of India
22-04-2025
- Business
- Time of India
FTC sues Uber, alleging it signed up Uber One subscribers without their permission
The US Federal Trade Commission filed a lawsuit against Uber on Monday, alleging that it enrolled consumers in its Uber One subscription programme without their consent and made it too difficult for them to cancel the service. Uber One members pay $9.99 per month or $96 per year for a range of services, including fee-free Uber Eats food deliveries and cash back when they take Uber rides. In its lawsuit, the FTC said multiple customers complained that Uber signed them up for Uber One without their permission or charged them for the service before a free trial period was over. In at least one case, a person was charged $9.99 per month even though they didn't have an Uber account, the lawsuit said. The FTC said Uber also made it extremely difficult for subscribers to cancel Uber One . The agency said Uber requires customers to take at least 12 different actions on at least seven screens to cancel the service. Cancellation gets even harder for consumers within 48 hours of their billing date, the FTC said, requiring them to navigate as many as 23 screens and still contact customer service. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 15 Photos That Will Make You Laugh So Hard You'll Cry Creative Terrace Designs "Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel," said FTC Chairman Andrew N. Ferguson, who has led the FTC since January after he was tapped as chairman by President Donald Trump . In a statement, Uber said it was disappointed that the FTC chose to move forward with the lawsuit. Uber said its sign-up and cancellation process is clear, simple and lawful. Live Events "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," Uber said. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Uber said at one point it did require customers to contact a service representative if they wanted to cancel within 48 hours of a billing period, but that is no longer the case.
