The Federal Trade Commission initiated a complaint on Monday against Uber, accusing the ride-hailing and delivery conglomerate of charging users for its Uber One subscription service without their agreement.

The complaint alleges that Uber did not provide the discounts guaranteed in its subscription service and created unreasonable obstacles for consumers attempting to quit, despite its assurances of “cancel anytime.”

Uber has denied any misconduct and criticized the FTC for hastening the investigative process and based its assertions on “unverified allegations.”

The complaint follows the FTC’s initiative, under former head Lina Khan, urging subscription service providers to simplify cancellation processes.

In October 2024, the FCC implemented its “click to cancel” regulation, mandating that enterprises facilitate subscription cancellations with the same ease as the sign-up process.

Notwithstanding opposition from business organizations, the regulation is anticipated to be implemented on May 14.

“Americans are fatigued by being enrolled in unsolicited subscriptions that appear exceedingly difficult to terminate,” said FTC Chairman Andrew Ferguson. The Trump-Vance FTC is advocating for the interests of the American people.

The FTC’s lawsuit, stemming from a probe initiated last year, asserts that Uber users are falsely guaranteed monthly savings of $25.

The FTC said, “Even if that were accurate, Uber does not factor in the subscription fee (up to $9.99 per month) when assessing those savings.” The corporation conceals significant information about the membership, such as using tiny, greyed-out writing that buyers may easily overlook.

The lawsuit alleges that Uber automatically billed users who registered for a free trial prior to their payment date. It further asserts that Uber renders cancellation “extremely difficult” for customers, requiring users to traverse “up to 23 screens and undertake as many as 32 actions to cancel.”

These actions involve providing reasons for cancellation, contending with Uber’s attempts to persuade them to suspend their membership, and, if unsuccessful, receiving offers to retain their subscription.

The FTC’s statement indicates that some customers are instructed to reach out to customer support for cancellation but are provided no means to do so; others claim that Uber billed them for an additional payment cycle after they sought cancellation and awaited a response from customer care.

Uber confirmed that customers wishing to cancel within 48 hours of their registration date previously needed to contact customer care for cancellation.

The corporation asserts that this is no longer true. TechCrunch has inquired about the date when Uber revised its policy to let consumers to cancel via the app.

The plaintiffs are urging the court to restrain Uber from perpetuating its alleged misleading tactics and to compel the corporation to provide financial restitution.

“We express our disappointment regarding the FTC’s decision to proceed with this action; however, we are confident that the judiciary will concur with our understanding: Uber One’s enrollment and termination procedures are transparent, straightforward, and adhere to both the letter and intent of the law,” said an Uber representative.

“Uber does not enroll or impose charges on consumers without their explicit consent, and cancellations can now be executed at any time within the app, typically taking individuals 20 seconds or less.”

Tim Muris, a former FTC chair who represented Uber throughout the investigation, criticized the FTC for not conducting a comprehensive inquiry and for formulating its complaint based on “misapprehensions of both the facts and the law.”

Uber’s current external counsel, Christine Wilson, said, “The atypical character of the expedited investigative procedure that preceded this enforcement action was exacerbated by the inclusion of new and unverified allegations at the eleventh hour.”

It is disheartening to see the FTC deviate from the thoroughness and impartiality that have historically characterized the agency at its peak.

In 2024, Uber One’s membership reached 30 million across 34 countries, with the firm reporting an approximate annual growth rate of 60%.

One year before, Uber CEO Dara Khosrowshahi projected that Uber One’s membership revenues will surpass $1 billion in 2024.