The U.S. Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the ride-hailing company of making “false or misleading” statements about its subscription service, Uber One. The complaint was filed Monday in a federal court in California.
According to the FTC , Uber claimed the $9.99-a-month service would save users about $25 each month, but the company did not factor in the cost of the subscription itself.
The regulator also said the company misled users by claiming the service could be canceled “anytime.” In reality, the FTC said that cancelling required jumping through multiple screens and hoops.
“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said FTC Chair Andrew Ferguson. “Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel.”
Uber has denied the allegations
The company said its processes for sign-up and cancellation are “clear, simple, and follow the letter and spirit of the law.”
In a statement, Uber said, “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.”
The lawsuit comes at a time when the Trump administration is already scrutinizing major tech companies. Uber is among several tech firms facing the court, with Apple, Amazon, Meta , and Google all involved in antitrust battles brought by the FTC or the Department of Justice.
Uber’s support for Trump did not lead to a softer legal stance
The ride-service and its chief executive, Dara Khosrowshahi, each donated $1 million to President Donald Trump’s inauguration earlier this year. Executives from other tech giants, including Apple CEO Tim Cook, Amazon founder Jeff Bezos, and Meta founder Mark Zuckerberg, also attended the event and have held meetings with the president at the White House.
Despite these interactions, the FTC under Ferguson has continued to press forward with antitrust actions. Ferguson, who was appointed by Trump, has accused Big Tech companies of censorship and has indicated that his agency will continue the regulatory efforts started under his predecessor, Lina Khan.
“The Trump-Vance FTC is fighting back on behalf of the American people,” Ferguson said, referring to Vice President JD Vance.
In court documents, FTC attorneys claimed that canceling Uber One could require users to complete up to a dozen actions and navigate at least seven different screens. Of course, it would also require them to follow the correct path. The suit says this violates consumer protection laws.
This isn’t the first time the FTC has gone after the ride-hailing service. During Trump’s earlier term, the agency sued the company over the mishandling of user data and claims about driver earnings. The company settled both cases and paid $20 million in refunds to drivers.
The FTC has taken similar actions against other tech firms . Under former President Joe Biden, the agency filed a lawsuit against Amazon over its Prime subscription program. That case is scheduled to be heard later this year in Seattle.
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