FTC Sues Uber for Making Uber One Subscriptions ‘Unreasonably Difficult’ To Cancel

The Federal Trade Commission (FTC) is taking ride-hailing company Uber to court. The government agency claims Uber tricked customers with misleading billing and cancellation practices.

The FTC’s case centers around the Uber One $9.99 a month plan, which offers discounts on rides as well as free delivery. The government says Uber put customers on the subscription plan without proper consent. In addition, Uber supposedly made the cancellation process exceedingly difficult, even though the company promoted a simple “cancel anytime” option.

“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said FTC Chairman Andrew Ferguson in a press release. “Today, we’re alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel.”

According to the FTC’s investigation, Uber customers had to work through no less than 23 screens and take up to 32 actions in order to cancel. Sometimes users were directed to contact customer service for cancellation but were not provided a method to do so.

Some customers told the agency that even after their requests for cancellation, they were charged another billing cycle while waiting for customer support to respond. Other claims involved Uber charging customers before an offered “free trial” of the subscription ended.

Uber Responds to FTC Lawsuit

Uber expressed disappointment with the FTC lawsuit. It claims the agency “rushed” the investigation and built its findings on “misunderstandings.” The ride-hailing company is confident the courts will strike down the FTC’s allegations.

“Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law,” Noah Edwardsen, an Uber spokesperson, claimed, per NBC News. “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.”

The government watchdog alleges that Uber broke the law by violating the FTC Act as well as the Restore Online Shoppers’ Confidence Act (ROSCA). Under ROSCA, online retailers must provide clear terms of service, properly get customer consent before charging a fee, and offer an easy method to cancel an ongoing subscription.

Last year, the food delivery app company Grubhub was hit by a $25 million fine from the FTC. Among the various charges levied by the government, Grubhub was accused of allegedly misleading Grubhub+ subscribers by offering free delivery on orders but charging them a fee, nonetheless.