The US Federal Trade Commission (FTC) has initiated legal action against Uber, claiming its subscription offering used deceptive billing and cancellation tactics.
The FTC alleges that Uber charged customers for the Uber One subscription without obtaining their consent and made it difficult for them to cancel.
An Uber spokesperson denied the allegations and expressed disappointment with the FTC’s decision to pursue the lawsuit. The ride hailing company has also provided a point-by-point response disputing the allegation.
Launched in 2021, Uber One is designed to offer subscribers benefits such as no-fee delivery and discounts on rides and orders for $9.99 per month or $96 per year.
The US government’s lawsuit alleges that the app automatically enrolled users in a trial through buttons that said “Start saving” or “Try for free.”
In one instance, users were given the options “Start saving” or “Cancel,” and clicking “Start saving” immediately enrolled them in Uber One, resulting in monthly or yearly charges. The complaint states that it is unclear what “Cancel” would cancel at this point since the user has not yet signed up for Uber One.
The FTC’s complaint contends that Uber has also made it “extremely difficult” for consumers to suspend their subscriptions, potentially requiring them to navigate numerous screens and take multiple actions.
“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said Andrew N Ferguson, FTC chairman, in a written statement.
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