FTC and 21 states sue Uber over deceptive Uber One subscription practices

The Federal Trade Commission and 21 states filed an amended complaint against Uber Technologies Inc. (NYSE: UBER) alleging the company charged consumers for its Uber One subscription without consent and made cancellation difficult.

The complaint, filed in the U.S. District Court for the Northern District of California, claims Uber failed to deliver promised savings including $0 delivery fees and engaged in deceptive billing practices. The District of Columbia joined 21 states in the action, which seeks civil penalties for alleged violations of the Restore Online Shoppers' Confidence Act and state laws.

According to the complaint, Uber markets its monthly or annual Uber One subscription as providing discounts such as $0 delivery fees and $25 in monthly savings. However, consumers reported not receiving promised monthly savings or being charged fees on deliveries despite the zero delivery fee promise.

The filing alleges many consumers were enrolled in Uber One without their knowledge or consent. Some consumers who signed up for free trials were automatically enrolled and charged before the trial period ended, while others reported being charged despite never knowingly subscribing to the service.

The complaint states that users attempting to cancel the subscription faced barriers, potentially requiring navigation through 23 screens and taking up to 32 actions to complete cancellation, despite Uber's claims that consumers can "cancel anytime."

The FTC initially sued Uber in April over the subscription practices. The Commission authorized the amended complaint in a 2-0 vote. The participating states include Alabama, Arizona, California, Connecticut, Illinois, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Virginia, West Virginia, and Wisconsin.

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