Tri-State Chauffeurs

The Federal Trade Commission (FTC) and 21 states have expanded their lawsuit against Uber, accusing the ride-sharing giant of deceptive billing and cancellation practices related to its Uber One subscription service. The complaint alleges that Uber misled consumers about savings, charged them prematurely, and made it difficult to cancel memberships, potentially impacting millions of users nationwide.

Key Takeaways

• The FTC and 21 states have joined forces in a lawsuit against Uber.
• Allegations include deceptive billing, unauthorized charges, and difficult cancellation processes for Uber One.
• The case could result in refunds, penalties, and nationwide changes to subscription management.

Allegations Against Uber

The amended complaint, filed in federal court in California, outlines several key issues with Uber's handling of its Uber One subscription service. Regulators claim that Uber enrolled some users without clear consent, billed them before free trial periods concluded, and overstated the potential savings offered by the subscription. A central point of contention is the alleged difficulty in canceling Uber One, with the complaint stating that the process required navigating multiple screens or contacting customer support, rather than offering a straightforward, one-step cancellation.

FTC Chair Andrew Ferguson stated that consumers are tired of unwanted subscriptions that are nearly impossible to cancel. Similarly, New York Attorney General Leticia James emphasized that companies should not profit from tricking consumers into recurring charges that are arduous to stop.

States Joining the Lawsuit

In addition to New York, the following states are participating in the complaint against Uber:

• Alabama
• Arizona
• California
• Connecticut
• District of Columbia
• Illinois
• Maryland
• Michigan
• Minnesota
• Missouri
• Montana
• Nebraska
• New Hampshire
• New Jersey
• North Carolina
• Ohio
• Oklahoma
• Pennsylvania
• Virginia
• West Virginia
• Wisconsin

Uber's Defense

Uber has denied the allegations, asserting that its subscription practices comply with the law. The company maintains that Uber One provides clear disclosures during sign-up and that customers can cancel their subscriptions at any time through the app. Uber has also stated that it has implemented changes to simplify the cancellation process and enhance billing transparency. The company views the lawsuit as a disagreement over interpretation rather than evidence of intentional deception.

Implications for Consumers and the Industry

This case highlights the growing scrutiny of subscription-based services across various industries. If regulators are successful, the lawsuit could lead to significant outcomes for Uber users, including potential refunds and civil penalties. It may also set a precedent for how tech companies manage and market auto-renewing subscriptions, potentially influencing practices nationwide. Consumer advocates urge users to regularly review their app settings and bank statements to ensure they are only paying for services they actively use.

The lawsuit is expected to proceed through the courts slowly, with a trial potentially years away. In the meantime, Uber One remains operational, and consumers are advised to be vigilant about their subscriptions.

Sources

• FTC complaint against Uber expanded, TheStreet.
• Uber (UBER) Faces FTC Lawsuit Allegations of Deceptive Practices, GuruFocus.
• CT joins FTC lawsuit against Uber alleging deceptive practices, New Haven Register.
• What regulators say Uber did wrong, Miami Herald.