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The Federal Trade Commission accused Uber of secretly enrolling customers in its Uber One program, which launched in 2021. The FTC filed the lawsuit and announced it on Monday, April 21.
The agency said Uber charged customers before trials ended, and buried cancellation behind up to 32 steps – despite a "cancel anytime" pledge.
"Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel," said FTC chair Andrew Ferguson.
Uber One is the ridesharing app's paid membership, promising benefits for rides and on Uber Eats. Members can get no delivery fee on some orders and discounts on eligible rides.
According to the FTC's complaint, Uber advertised savings of $25 a month — but didn't clearly disclose that Uber One costs up to $9.99 a month. Key terms were hidden in fine print, including small, greyed-out text users could easily miss.
One consumer said they were charged despite not having an Uber account. Others claimed they were billed before their free trial expired, even though Uber said they could cancel at no cost during the trial.
The FTC said that some customers faced as many as 23 screens and had to take up to 32 steps to opt out of Uber One. Some were asked to explain why they wanted to cancel or were pushed to pause their membership instead.
Others said they had to contact support, but couldn’t find a way to do so. Several users reported being charged for another cycle while waiting for help.
Regulators say these tactics violate the FTC Act and the Restore Online Shoppers' Confidence Act. The laws require companies to clearly explain terms, obtain consent before charging, and offer a simple way to cancel recurring services.
Uber has denied the FTC's accusations.
"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," an Uber spokesperson told the Daily Voice. "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."
Christine Wilson, a former FTC commissioner now serving as outside counsel for Uber, also criticized the agency's suit.
"The unconventional nature of the rushed investigative process that preceded this enforcement action was compounded by the addition of new and unvetted allegations at the last minute," said Wilson. "It is disappointing to see the FTC stray from the rigor and fairness that has long defined the agency at its best."
Uber also said it has refunded customers who reach out to support "to cancel within 48 hours of their next billing period."
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