Feds Uber is accused of charging customers for subscriptions without approval

The Federal Trade Committee filed a lawsuit on Monday against Uber, claiming that the horseback giant and delivery operator of the Uber One subscription service without their approval. The lawsuit also claims that Uber failed to provide the promised savings in the subscription service and made it difficult for users to cancel it despite its promises to “cancel at any time”.

Uber denied any violations and accused FTC of rushing to the investigation process and putting its claims on “unrestricted allegations.”

The lawsuit comes after FTC pushed companies with subscription services to facilitate cancellation under its former manager, Lin Khan. In October 2024, the agency terminated the “Click to cancel” base that requires companies to make the cancellation of the subscription easy like registering for anyone. Despite the confrontation Some challenges Through industrial groups, the base is expected to enter into force on May 14.

“The Americans are tired of registering for unwanted subscriptions that seem impossible to cancel,” Andrew Ferguson, Chairman of the Federal Trade Committee said in a statement. “TROMP-VANCE FTC is fighting on behalf of the American people.”

FTC complaint, which follows investigation That year began last year, claiming that Uber customers were wrongly promised $ 25 a month.

He says a statement From FTC. “The company also blocks material information about the subscription (for example, using a small, gray text that consumers can easily miss).”

Uber’s complaint is accused of directing consumers who have been involved in a free experience before the date of the billing. It also claims that Uber makes it “very difficult” to cancel customers, as users can be forced to move “up to 23 screens and take up to 32 to cancel. These procedures come in the form of explaining the reason for their desire to cancel, and to deal with Uber urges them to stop their membership, and if this fails, then submit offers to stay.

“Some users are informed that they have to contact customer support to cancel, but they are not given a way to contact them; others claim that Uber has imposed them on another bills course after they asked to cancel and wait for the customer support,” FTC statement.

Uber explained this previously, the customers who wanted to cancel within 48 hours of registration date had to contact customer support to cancel. The company says this is no longer the case. Techcrunch continued to learn when Uber updated its policy to allow these customers to cancel within the application.

Prosecutors are pushing the prohibition of Uber from continuing its alleged deceptive practices and forcing the company to pay cash relief.

“We are disappointed that FTC chose to move forward in this procedure, but we are confident that the courts will agree to what we already know: the subscriptions and cancellation in Uber are clear and simple and followed the rhetoric of the law and its spirit.” “Uber does not register or charge consumers without their consent, and cancellation can now be performed at any time in application and most people take 20 seconds or less.”

Tim Meris, a former head of the Federal Trade Committee, such as Uber, during the case of investigation into the case, accused FTC of failing to conduct a full investigation and put her complaint about “misunderstanding of both facts and law.”

“The unconventional nature of the falling investigation process that preceded the implementation of this execution was declined with the addition of new and unstable allegations at the last minute. It is disappointing to see the FTC Ship of rigor and justice that has long identified the agency at its best,” said Christine Wilson, the current external lawyer of Ubar.

The Uber One members base reached 30 million in 34 countries in 2024, and the company says it grows about 60 % on an annual basis. A year ago, the CEO of Uber Dara Khosrowshahi has estimated that Uber One membership will be.More than one billion dollarsIn 2024.