On Monday, the Federal Trade Commission (FTC) got into action, filing a lawsuit against Uber. They claim the company engaged in misleading billing practices for its subscription-based service, Uber One. Uber One launched in November 2021. It provides subscribers with several benefits, including delivery with no service fee and discounts on select rides, delivery and pickup orders. Currently, the subscription is $9.99 a month or $96 a year.
The lawsuit is part of another significant FTC enforcement action. This is the first large-scale action taken by the administration against a big tech company since President Donald Trump began his second term in January. According to the complaint, Uber deceived consumers about what they would get as part of its Uber One subscription service. Further, it claims, the company failed to provide a straightforward means for consumers to terminate their subscriptions. According to the FTC, Uber billed consumers without their informed consent. This practice is illegal under the FTC Act and the Restore Online Shoppers’ Confidence Act.
As the FTC has recently warned, Americans are becoming increasingly angry. They are having trouble cutting off recurring subscriptions that they’ve been enrolled in without consent. The Federal Trade Commission’s (FTC) mission is to protect consumers and promote competition by preventing anticompetitive, deceptive, and unfair business practices. It illustrates the vital importance of transparency in subscription-based services.
In its complaint, the FTC asserted that, at a minimum, Uber misleadingly turned off important safety features. It alleges that consumers were given deceptive information regarding the Uber One subscription, leading to users incurring charges they did not authorize. The agency blames the shortfall on the cumbersome cancellation process, which only added to the damage. As a result, millions of consumers found themselves stuck in a costly service they never requested.
The Trump-Vance FTC is fighting back on behalf of the American people. – FTC Chair Andrew Ferguson
The FTC’s action signals a renewed commitment to enforcing consumer protection laws in the digital age, particularly as more individuals turn to subscription services. As consumers become increasingly wary of automatic renewals and hidden fees, the commission’s intervention may serve as a warning to other companies operating in the tech space.