- FTC sues Uber for enrolling customers in Uber One without consent.
- Lawsuit claims Uber misled users about savings and made canceling difficult.
- Uber denies wrongdoing, says cancellation is now quick and clear.
- FTC seeks to stop deceptive practices and secure financial relief for customers.
On April 21, 2025, the Federal Trade Commission took a bold step by filing a lawsuit against Uber, accusing the ride-hailing and delivery giant of enrolling customers in its Uber One subscription service without their consent.
The allegations don’t stop there. The FTC claims Uber misled customers about promised savings and made canceling subscriptions a frustrating ordeal, despite advertising a “cancel anytime” policy. This legal action shines a spotlight on consumer rights and the growing scrutiny of subscription-based business models.
The FTC’s complaint paints a troubling picture. It alleges that Uber automatically charged customers who signed up for a free trial before their billing period ended, catching many off guard. The agency also says Uber exaggerated savings, promising up to $25 a month while failing to account for the subscription’s cost, which can reach $9.99 monthly.
Important details about the service were allegedly hidden in small, hard-to-read gray text, making it easy for consumers to miss critical information. Canceling the subscription wasn’t any easier. The FTC claims some users had to navigate up to 23 screens and complete as many as 32 actions to unsubscribe. Customers faced prompts to explain their reasons for leaving, offers to pause their membership, and even last-ditch deals to stay.
In some cases, users were told to contact customer support but given no clear way to do so. Others reported being charged for another billing cycle after requesting cancellation, left waiting for a response that never came.
Uber, however, is pushing back. The company denies any wrongdoing, insisting its sign-up and cancellation processes are transparent and comply with the law. A spokesperson emphasized that most users can now complete cancellations in-app in about 20 seconds.
Uber also addressed a past policy that required customers to contact support to cancel within 48 hours of signing up, clarifying that this is no longer the case. While the company didn’t specify when this change was made, it’s a point of contention as the FTC’s investigation began last year.
Uber’s legal team, including former FTC chair Tim Muris and current counsel Christine Wilson, criticized the agency for what they call a rushed investigation. They argue the FTC relied on unverified claims and misunderstood both the facts and the law.
This lawsuit comes at a time when the FTC is cracking down on subscription services. Under former director Lina Khan, the agency championed consumer-friendly policies, including the “click to cancel” rule finalized in October 2024.
Set to take effect on May 14, 2025, this rule mandates that canceling a subscription must be as straightforward as signing up. Despite pushback from industry groups, the rule reflects growing frustration with companies that lock consumers into unwanted memberships.
FTC Chairman Andrew Ferguson echoed this sentiment, stating that Americans are fed up with deceptive subscription practices. He framed the lawsuit as part of the agency’s commitment to protecting consumers under the Trump-Vance administration.
Uber One has grown rapidly, boasting 30 million members across 34 countries in 2024, with a 60% year-over-year increase. Last year, CEO Dara Khosrowshahi estimated the service’s membership fees would exceed $1 billion.
This success makes the FTC’s allegations particularly significant, as they could impact a major revenue stream for Uber. The lawsuit seeks to stop Uber’s alleged deceptive practices and demands financial compensation for affected customers.
As the case heads to court, it raises broader questions about transparency in subscription services. Consumers are increasingly wary of hidden fees and complicated cancellation processes, and regulators are taking notice.
Uber maintains its practices fairly, but the outcome of this lawsuit could set a precedent for how companies will handle subscriptions in the future. Stay tuned as this story develops, with potential implications for both Uber and the wider subscription economy.
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