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FTC Accuses Uber of Subscription Traps

Summary

  • FTC claims Uber made canceling subscriptions difficult.
  • Allegations include charging users without consent.
  • FTC states promised savings were not delivered to users.
FTC Accuses Uber of Subscription Traps

The Federal Trade Commission has expanded its legal action against Uber, alleging deceptive business practices related to the Uber One subscription service. The amended complaint, now joined by 21 additional states and the District of Columbia, claims Uber unfairly charged customers for subscriptions without explicit consent. It further asserts that the company failed to deliver the promised savings, including $0 delivery fees on Uber Eats.

Contrary to Uber's claims of a simple cancellation process, the FTC states that canceling Uber One can involve navigating up to 23 screens and completing as many as 32 actions. This update to the lawsuit underscores a broader regulatory push for "click-to-cancel" rules, aiming to protect consumers from arduous subscription cancellation procedures.

While an appeals court recently nullified a federal click-to-cancel rule, states like California, New York, and others have their own laws requiring easier subscription renewals and cancellations. The FTC's expanded complaint seeks to hold Uber accountable for these alleged practices.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

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