The Federal Trade Commission (FTC) has filed a lawsuit against Uber, alleging that the ride-hailing and delivery company charged users for its Uber One subscription service without obtaining proper consent and made it difficult for them to cancel. This case, filed on Monday, alleges that Uber has employed deceptive practices that contravene consumer protection laws in the United States.
The FTC states that Uber violated two key laws: the Federal Trade Commission Act and the Restore Online Shoppers’ Confidence Act. These laws are designed to protect consumers from being misled online and ensure companies are transparent about their billing practices. According to the FTC, Uber provided users with confusing and incomplete information about its subscription service, made cancellation difficult, and in some cases, charged people even when they had not agreed to it.
FTC Chair Andrew Ferguson made a strong statement, saying that many Americans are tired of being trapped in subscriptions they didn’t want in the first place, especially when cancelling them feels nearly impossible. “The Trump-Vance FTC is fighting back on behalf of the American people,” Ferguson said, referring to the current administration under President Donald Trump, who began his second term in January.
This lawsuit is significant because it’s the first time during Trump’s second term that the FTC has taken legal action against a major tech company. However, it is not the first time Uber or other tech giants have faced such scrutiny. The FTC has several ongoing cases against companies like Meta (formerly Facebook), Google, and Amazon. Some of those were filed under President Biden’s term, but under Trump’s leadership, the FTC has once again taken a more aggressive stance against what it sees as misuse of consumer rights.
One interesting detail that has resurfaced in this case is Uber’s past connection to Trump. According to reports, both Uber and its CEO, Dara Khosrowshahi, donated $1 million each to Trump’s inaugural fund. This places Uber among several tech firms that have tried to maintain good relations with the current administration. Still, this donation hasn’t shielded the company from government action.
Reacting to the lawsuit, Uber spokesperson Noah Edwardsen said the company is disappointed by the FTC’s complaint. However, Uber stands by its subscription program and believes the courts will eventually rule in its favor. “Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law,” Edwardsen said in a statement. He added that Uber does not charge anyone without permission and that users can now cancel their subscription directly from the app, usually within 20 seconds.
Uber One, the subscription service at the heart of the lawsuit, was launched in 2021. It offers customers benefits like free delivery on food orders and discounts on rides and deliveries. The service costs $9.99 per month or $96 per year. According to Uber’s most recent annual report, about 30 million users had signed up for Uber One by December 2024.
However, the FTC argues that Uber did not fully explain the cost of the service when promoting it. For example, the company advertises that customers could save around $25 a month, but doesn’t clearly explain that these savings come with a monthly or yearly fee. The complaint also states that Uber sometimes charges users before their billing date arrives and continues to charge some people even after they have cancelled their membership.
Another serious concern raised in the complaint is the difficulty people experienced in cancelling their Uber One subscription. The FTC says Uber deliberately made the process complicated. Some users were directed to contact customer support to cancel, but then weren’t given a way to actually reach anyone. Others claimed they had successfully cancelled their subscription but were still charged for another billing cycle.
Ferguson emphasized that this is not just about Uber, but part of a broader move to hold tech companies accountable. In an earlier interview with CNBC, he said, “Big Tech is one of the main priorities of the Trump-Vance FTC. It’s one of the reasons the president appointed me to this position.” This suggests that further actions may be taken against other tech giants as well.
Meanwhile, Uber’s leadership has been attempting to maintain a balanced relationship with various governments worldwide. In a recent interview at the Wall Street Journal’s event in Davos, Khosrowshahi said Uber believes in engaging with every government in which it operates. He added that having “a diversity of voices” in government could lead to better discussions and outcomes.
This lawsuit serves as a reminder to companies that aggressive subscription tactics can backfire, particularly when consumers feel they have been tricked or trapped. It also highlights that government agencies, such as the FTC, are ready to step in and take action when they believe companies have gone too far. For customers, the case highlights the importance of reading the fine print and keeping track of billing details when signing up for any online subscription service.
If the FTC wins the case, Uber could face fines and be required to change its subscription policies. The case could also lead to stricter rules for other tech companies offering online services. For now, the legal battle has just begun, but its outcome could impact not just Uber users but millions of online consumers across the United States.
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