The Federal Trade Commission on Monday filed a lawsuit against Uber, alleging that the rider’s heel and delivery giant charged consumers for his Ober One Subscription Service without their consent. The legalization also claims that Uber has failed to provide promises in his subscription service and has made it irrational for consumers to cancel despite their “cancellation” promises at any time.
Uber has denied any wrongdoing and has accused the FTC of accelerating the investigative process and describing his claims on “unprecedented accusations”.
This legal action comes when the FTC has made companies easier to cancel the purchase services companies under their former director Lena Khan. In October 2024, the agency finalized the principle of its “click to cancel” the principle, demanding companies to make it easier to cancel subscriptions like signing up for anyone. In spite of facing Some challenges Industry groups are expected to implement this principle on May 14.
“US is fed up with signing up for unwanted subscriptions that seem impossible to cancel,” said Andrew Ferguson, FTC chairman Andrew Ferguson in a statement. “Trump Venice FTC is fighting on behalf of the American people.”
FTC complaint, which is one after another Inquest Last year, it started, alleging that Uber consumers have been wrongly promised to save a monthly $ 25.
“Even if this was true, Uber does not calculate the cost of subscription (up to 999.99/month) when calculating these savings.” Description From the FTC, “the company also confuses material information about subscriptions (for example, using small, brown texts that users can easily reduce).”
The complaint alleges that he automatically charges users who signed up for a free trial before their billing date. It also alleges that Uber has made users “extremely difficult” to cancel, which can be forced to take more than 32 steps to “maximize and cancel 23 screens. These measures are to explain, if they want to abstain, if they want to abstain.”
The FTC statement said that “some users are told to contact customer support to cancel them, but no way to contact them has been given. Others claim that Ober had taken them for another billing cycle after requesting cancellation and they were returning from the customer support.”
Uber made it clear that before that, customers who wanted to cancel within 48 hours of their signup date had to contact customer support to cancel it. The company says it is no longer. Tech has arrived to learn when Uber updated his policy to allow these users to cancel in the app.
The plaintiffs are urging the court to prohibit Uber from continuing their alleged deception and force the company to pay monetary relief.
“We are disappointed that the FTC has chosen to move forward with this action, but they believe the courts will agree that we already know: the sign -up and cancellation process of Uber One is clear, easy and follow the letter and spirit of the law.” “Uber does not sign up or charge users without their consent, and cancellation can now be done in the app at any time and can take most people 20 seconds or less.”
Former FTC chair, Tim Mors, who represented Uber during the investigation period, accused the FTC of failing to conduct a thorough investigation and formed the basis for his complaint on “facts and law misunderstandings”.
“The unconventional nature of the investigation process before the implementation process was complicated at the last minute due to the increase of new and unbearable allegations,” said Christine Wilson, the current Uber’s external lawyer, said Christine Wilson.
In 2024, in 34 countries, Uber One’s member base reached 30 million, and the company says this year is increasing by about 60 %. A year ago, Uber’s CEO Dara Khusrooshahi had estimated that Ober One would have a membership fee “Billion in more than 1 billion“In 2024.