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The Federal Trade Commission has filed an amendment to its lawsuit against ridesharing company Uber, alleging deceptive business practices tied to the Uber One subscription service.
The amendment adds 21 states and the District of Columbia to the complaint it filed in California District Court in April. In a press release about the amendment, the FTC said, “Uber charged consumers for its subscription without their consent, failed to deliver promised savings including $0 delivery fees, and made it difficult for users to cancel the subscription.”
Uber One costs $10 per month or $100 per year and offers discounts, free delivery on Uber Eats, cash back, and additional perks.
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A representative for Uber did not immediately respond to a request for comment.
In April, Uber told CNET that it disputed points in the original FTC complaint, claiming the company does not sign up or charge consumers for an Uber One subscription without their consent and that customers can cancel in its app, saying that cancellations “take most people 20 seconds or less.” Uber said, “Consumers who canceled (Uber One) were never charged additional fees.”
The company added at the time, “We are disappointed that the FTC chose to move forward with this action but are confident that the courts will agree with what we already know: Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law.”
The FTC amendment adds states including Arizona, California, New York and Pennsylvania to the case. Contrary to what Uber has said, the FTC says that canceling Uber One can involve navigating “as many as 23 screens and take as many as 32 actions.”
Legal headwinds
In 2024, there was widespread support in the federal government and in states such as California for introducing “click-to-cancel” rules that would require companies to make it easier for customers to cancel their unwanted subscriptions to online services. An appeals court nullified the federal version of that rule this year.
The Automatic Renewal Law in California, meanwhile, requires businesses with customers in California to notify them when a subscription service is set to renew and prohibits the automatic renewal of a subscription without their consent. Other states, including New York, Virginia and Illinois have similar laws.
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