The U.S. Federal Trade Commission (FTC) has launched legal action against Uber Technologies Inc.
- The complaint alleges deceptive billing and obstructive cancellation processes related to Uber’s subscription service, Uber One.
- Focus on Uber One Subscription Service
- Uber One, launched in 2021, offers users benefits like $0 delivery fees and discounts on eligible rides and food orders.
- Subscription costs: $9.99 per month or $96 annually.
- The FTC claims users were enrolled without proper consent and faced challenges while trying to unsubscribe.
- Allegations of Unfair Cancellation Process
- The FTC complaint highlights that canceling Uber One could require navigating up to 23 screens and taking as many as 32 actions.
- This process allegedly violated consumer protection laws by making cancellation unreasonably difficult.
- FTC’s Chairman Cites Consumer Protection
- FTC Chairman Andrew Ferguson, a Trump appointee, emphasized that the agency is “fighting back on behalf of the American people.”
- The statement underscores the agency’s renewed focus on tech company accountability under the Trump-Vance administration.
- Uber Responds to Allegations
- Uber firmly denies the accusations and expressed disappointment over the FTC’s lawsuit.
- Spokesperson Ryan Thornton stated that cancellations are now quick and easy, taking “20 seconds or less” within the app.
- Past vs. Present Cancellation Process
- Uber acknowledged that previously, users had to contact customer support within 48 hours of the next billing cycle to cancel.
- According to the company, that policy has since changed, and users can now cancel at any time directly in the app.
- Consent Concerns Raised
- The FTC also claims many consumers were charged without giving proper consent.
- One consumer reportedly stated they were charged for Uber One without even having an Uber account.
- Uber insists that it does not sign up or bill users without consent, labeling the complaints inaccurate.
- Part of a Broader FTC Tech Crackdown
- This lawsuit marks the first legal action the FTC has taken against a major tech firm since Trump’s second term began in January.
- It signals a strong stance on consumer protection and digital fairness under the current FTC leadership.
- Ongoing FTC Trial Against Meta
- Meanwhile, the FTC is in the second week of trial in a separate case against Meta (formerly Facebook).
- That case alleges Meta created a social media monopoly through acquisitions of Instagram (2012) and WhatsApp (2014).
- Meta has rejected the lawsuit as “misguided,” citing that the acquisitions were previously approved by regulators.
- Regulatory Scrutiny on the Rise
- Both Uber and Meta are facing increasing pressure from U.S. regulators amid rising concerns over consumer rights, fair competition, and transparency in the tech sector.
- What It Means for Users and the Tech Industry
- If the FTC wins the case, Uber could be forced to issue refunds, pay penalties, or revise its subscription practices.
- The case sets a precedent for other tech firms offering subscription-based services, emphasizing the need for clear user consent and easy cancellation options.