Latest news with #RestoreOnlineShoppers'ConfidenceAct
Yahoo
23-04-2025
- Business
- Yahoo
Why Uber Stock Was Down Today
Shares of ride-hailing and delivery leader Uber (NYSE: UBER) were initially doing much better than the plunging stock market today, with only moderate declines as of midday. However, in the afternoon, shares sank as much as 5.3% at one point, before recovering to a 4.4% decline by 2:26 p.m. ET. Midday, news came over the wires that the Federal Trade Commission (FTC) was suing the company over tactics for signing up users to its Uber One subscription service. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The FTC's suit alleges that Uber used deceptive practices, misleading consumers over the benefits of an Uber One subscription, while also making it hard to cancel the subscription, and also charging users without their consent. That would violate the Restore Online Shoppers' Confidence Act, which was initially passed in 2010. Of note, this is the first lawsuit launched against a major tech company by the FTC under the new Trump administration. One of the more worrying allegations is that Uber makes it deceptively easy to accidentally sign up for Uber One, with the FTC saying many users had complained that they had no idea how they had signed up for the subscription, and didn't know why they were charged for it. And canceling is "extremely difficult," alleges the FTC. "Users can be forced to navigate as many as 23 screens and take as many as 32 actions to cancel," wrote the FTC in its press release. In response, a spokesman for Uber told CNBC that "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." Uber has been in the news of late, given that prominent investor Bill Ackman took a big position in the stock earlier this year. However, the stock isn't exactly super-cheap at these levels, and is somewhat dependent on continued double-digit growth. Additionally, the emergence of autonomous robotaxis are a potential long-term threat, despite Uber partnering with robotaxi leaders. If Uber has been engaging in deceptive practices to boost revenue in the recent past, shareholders could see a marked slowdown in near-term results. And with economic clouds gathering as a consequence of Trump's tariff war, Uber's stock could struggle for gains in the near term. Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Uber Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $524,747!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $622,041!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 153% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 21, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Uber Technologies. The Motley Fool has a disclosure policy. Why Uber Stock Was Down Today was originally published by The Motley Fool
Yahoo
22-04-2025
- Business
- Yahoo
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
Time of India
22-04-2025
- Business
- Time of India
US FTC sues Uber over allegedly deceptive practices in subscription service
The Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the company of "deceptive billing and cancellation practices" related to its Uber One premium service. The FTC claims Uber violated both the FTC Act and the Restore Online Shoppers' Confidence Act by misleading users about the service, making it difficult to cancel subscriptions, and charging customers without their consent. The FTC stated that users were required to navigate "as many as 23 screens and take as many as 32 actions to cancel", according to a report by The New York Times. The lawsuit also alleges that Uber falsely promised users monthly savings of $25 without accounting for subscription fees, with some being charged even before their free trial ended. This marks the first major tech lawsuit filed by the FTC since President Donald Trump returned to office. Uber has denied the accusations, with spokesperson Noah Edwardsen stating: "We are disappointed that the FTC chose to move forward with this action, 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." The case adds to the growing list of legal challenges faced by tech giants. The FTC and Department of Justice have ramped up scrutiny of companies such as Google, Meta, Amazon, and Apple. In another case, the Justice Department is seeking to break up Google by forcing it to divest Chrome, arguing that the browser feeds Google's search dominance. The department argued that Google used exclusionary agreements, including paying Apple billions annually to remain the default search engine on iPhones, allegedly shutting out competitors. Google and Meta have also faced monopoly allegations. US District Judge Leonie Brinkema ruled that Google engaged in anticompetitive behaviour to secure monopoly power in the open-web display ad server market. The FTC has similarly accused Meta of acquiring rivals such as Instagram and WhatsApp to dominate social media, arguing that the company employed a "buy-or-bury" strategy to eliminate emerging competition. Despite ongoing efforts by Silicon Valley leaders to strengthen ties with the Trump administration, regulators seem to be taking an increasingly hardline stance. Notably, Uber CEO Dara Khosrowshahi and the company itself each contributed $1 million to Trump's inauguration, alongside other industry leaders such as Meta and Amazon.
Indian Express
22-04-2025
- Business
- Indian Express
US FTC files case against Uber for misleading subscribers in signing up for Uber One
The US' consumer protection watchdog Federal Trade Commission (FTC) has filed a lawsuit against ride hailing and delivery company Uber alleging deceptive billing and cancellation practices involving Uber One subscribers. The case filed by FTC accuses Uber of signing up some Uber One subscribers without their knowledge and making misleading claims about their service, Reuters reported. The watchdog has stated that Uber violated FTC Act and Restore Online Shoppers' Confidence Act through its deceptive claims regarding Uber One subscription service, failure of the company to provide easier ways for consumers to cancel the Uber One subscription, and charging the customers without any consent. Today, the @FTC filed a lawsuit against Uber, alleging that the company made deceptive claims, billed people without their consent, and made it unreasonably difficult to cancel subscriptions. — Andrew Ferguson (@AFergusonFTC) April 21, 2025 '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,' FTC Chair Andrew Ferguson said in a statement. The Uber One service costs $9.99 per month and it offers discounts on Uber's ride hailing and food delivery services, i.e. Uber cabs and Uber Food. FTC takes action against Uber for deceptive billing and cancellation practices: /1 — FTC (@FTC) April 21, 2025 The FTC in its lawsuit filed in San Francisco has accused Uber of falsely claiming that users would save about $25 a month through the service and deceived the consumers into believing that it was very easy to cancel the service at any point. However, refuting the allegations leveled by FTC, an Uber spokesperson said that the company does not sign-up or charge customers without their due consent. 'We are disappointed that the FTC chose to move forward with this action, 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,' Uber spokesperson Noah Edwardsen said, as per Reuters.
Malay Mail
22-04-2025
- Business
- Malay Mail
Uber accused of tricking users into unwanted subscriptions, says US consumer watchdog
SAN FRANCISCO, April 22 — US regulators filed a lawsuit on Monday accusing Uber of misleading users about promotional savings at Uber One subscription service and even signing them up without consent. The Federal Trade Commission (FTC) argued in a legal complaint that the San Francisco-based company violated the Restore Online Shoppers' Confidence Act with tactics at Uber One. 'Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,' FTC chair Andrew Ferguson said in a release announcing the suit. 'We're alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel.' Uber One subscribers get discounts on rides or food deliveries made using an Uber Eats service. Subscriptions typically cost about US$10 (RM45) monthly. Uber enticed people to sign up with a promise of US$25 monthly in savings, but that did not apply to subscription fees, according to the complaint. FTC attorneys argued that Uber's promise of monthly savings was misleading, and that the company made it difficult for users to terminate Uber One subscriptions despite saying they could easily 'cancel anytime.' Uber denied signing people up without consent and said most cancellations of subscriptions take less than 20 seconds in the app. 'We are disappointed that the FTC chose to move forward with this action,' an Uber spokesperson told AFP. The spokesperson added that Uber was '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.' — AFP
