The Federal Trade Commission, along with 21 states and the District of Columbia, filed an amended complaint against Uber Technologies Inc. on Monday, escalating allegations that the ride-hailing giant engaged in deceptive billing and cancellation practices related to its Uber One subscription service.
The expanded lawsuit, filed in the U.S. District Court for the Northern District of California, accuses Uber of charging consumers for monthly or annual subscriptions without their consent, failing to deliver promised benefits, and creating unreasonably difficult barriers for users attempting to cancel the service.
According to the complaint, Uber marketed its Uber One program with promises of zero-dollar delivery fees and up to $25 in monthly savings. However, many subscribers reportedly continued to pay delivery fees on orders that were supposed to be fee-free and never received the advertised discounts.
The FTC alleges that some consumers were enrolled in the subscription without their knowledge. Users who signed up for free trials say they were charged before the trial period expired, while others claim they were billed despite never knowingly enrolling in the program at all.
Perhaps most troubling to regulators is the alleged difficulty in canceling the service. Despite Uber’s claim that customers can “cancel anytime,” the FTC says users may be required to navigate up to 23 screens and complete as many as 32 separate actions to end their subscription.
In response, Uber denied the allegations and defended its practices. The company said in an emailed statement that it does not sign up or charge consumers without their consent, adding that “the majority of cancellations take 20 seconds or less and can be done in the app anytime.”
Uber acknowledged that prior to December 2024, consumers within 48 hours of their next billing period had to contact customer support to cancel, a policy that was explained during signup.
The FTC first sued Uber in April over similar allegations. The amended complaint adds 21 states and the District of Columbia to the case, including major markets like California, New York, Texas, and Illinois. Other states joining the lawsuit include Alabama, Arizona, Connecticut, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, North Carolina, Ohio, Oklahoma, Pennsylvania, Virginia, West Virginia, and Wisconsin.
The legal action seeks civil penalties for alleged violations of the Restore Online Shoppers’ Confidence Act as well as various state consumer protection laws. The FTC voted 2-0 to authorize staff to file the amended complaint.
As standard procedure, the FTC emphasized that filing a complaint does not establish that the law has been violated. The Commission files such complaints when it has reason to believe violations may be occurring and determines that legal action serves the public interest. The case will ultimately be decided by the court.
