FTC Sues Uber, Alleging it Signed up Subscribers Without Permission

The U.S. Federal Trade Commission filed a lawsuit against Uber on Monday, alleging that it enrolled consumers in its Uber One subscription program without their consent and made it too difficult for them to cancel the service.

Uber One members pay $9.99 per month or $96 per year for a range of services, including fee-free Uber Eats food deliveries and cash back when they take Uber rides.

In its lawsuit, the FTC said multiple customers complained that Uber signed them up for Uber One without their permission or charged them for the service before a free trial period was over. In at least one case, a person was charged $9.99 per month even though they didn’t have an Uber account, the lawsuit said.

The FTC said Uber also made it extremely difficult for subscribers to cancel Uber One. The agency said Uber requires customers to take at least 12 different actions on at least seven screens to cancel the service. Cancellation gets even harder for consumers within 48 hours of their billing date, the FTC said, requiring them to navigate as many as 23 screens and still contact customer service.

“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said FTC Chairman Andrew N. Ferguson, who has led the FTC since January after he was tapped as chairman by President Donald Trump.

In a statement, Uber said it was disappointed that the FTC chose to move forward with the lawsuit. Uber said its sign-up and cancellation process is clear, simple and lawful.

“Uber does not sign up or charge consumers without their consent and cancellations can now be done anytime in-app and take most people 20 seconds or less,” Uber said.

Uber said at one point it did require customers to contact a service representative if they wanted to cancel within 48 hours of a billing period, but that is no longer the case.