The Federal Trade Commission (FTC) filed a lawsuit against Uber on Monday, accusing the ride-sharing and delivery company of charging users for its optional subscription service without permission and making it hard to cancel it.
The complaint, filed in federal court in California, alleges Uber engaged in deceptive bill and cancellation practices and failed to “deliver promised savings.”
The FTC claims customers are misled about savings of about $25 a month when signing up for the Uber One subscription. The complaint states Uber does not take into account the $9.99 monthly subscription when promising savings and obscures “material information” about the subscriptions with the use of small, grayed out text.
The 44-page complaint included anecdotes from consumers who expressed confusion over how to cancel their subscriptions and discussed the issues they faced in the Uber app. The FTC alleged some users were forced to navigate up to 23 screens when trying to cancel.
One consumer said the Uber One cancellation was a “circular loop” that was “impossibly difficult to navigate,” according to the complaint.
Uber is also accused of charging consumers before their billing date, with some users claiming they were automatically charged for the service before the end of the free trial Uber offers.
A spokesperson for Uber said the company is “disappointed” with the suit but “confident” the courts will rule in its favor.
“Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law,” the spokesperson wrote in a statement to The Hill. “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 who is now a partner at Freshfields and outside counsel for Uber, similarly slammed the 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. It is disappointing to see the FTC stray from the rigor and fairness that has long defined the agency at its best,” she wrote.
The commission’s vote to file the complaint was 2-0-1, with Commissioner Mark Meador recusing himself. Meador was sworn into the position earlier this month, while the commission’s two Democratic commissioners were fired by President Trump last month.
