Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: FTC sues Uber over false, misleading claims regarding Uber One, (Apr 22, 2025)

By Wendy Biddle, J.D.

Uber One is Uber’s all-inclusive recurring subscription for food delivery and ride-sharing.

The FTC has filed a complaint in the San Francisco federal district court against Uber Technologies and Uber USA for misleading subscription practices related to Uber One. The allegations include unauthorized enrollments, difficult cancellation processes, and charges without consent, violating the FTC Act and the Restore Online Shoppers’ Confidence Act. The FTC seeks a permanent injunction and monetary relief (FTC v. Uber Technologies, Inc., No. 3:25-cv-03477 (N.D. Cal. Apr. 21, 2025)).

Uber provides both food delivery services and ride-hailing services that consumers book and pay for through an app. Uber One is a monthly (or yearly) subscription service that consumers pay for that provides discounts on both services. Uber claims that the membership will save a certain amount off of rides or deliveries compared to those consumers who do not have Uber One. Uber also claims that consumers can cancel their subscription anytime without additional fees. Uber One charges consumers’ credit cards directly on a recurring basis and renews automatically.

The FTC alleged that Uber enrolled consumers in Uber One without their consent, using deceptive methods like push notifications and pop-ups, and charged consumers without obtaining express informed consent. For example, the complaint alleged that Uber uses a pop-up advertisement in the app that states “Try Uber One” and has a big button labeled “Try for Free.” When consumers click the “Try for Free” button they are immediately enrolled in Uber One and are charged within 4 weeks on a recurring basis. The FTC also listed several consumer complaints of Uber charging consumers for Uber One that they never signed up for.

The FTC also alleged that Uber failed to provide a simple mechanism for consumers to cancel their subscriptions. The complaint described the cancellation process as complex and time-consuming. For example, generally a consumer is forced to take 12 separate actions to cancel their subscription. But if a consumer is within 48 hours of their billing date, Uber removes the option to cancel from the app, forcing consumers to take as many as 32 actions and having to contact customer service. The customer service representatives take so long to respond to cancellation requests that consumers usually end up being charged again without their consent, or consumers were charged for subscriptions they believed were cancelled.

Additionally, the FTC accused Uber of charging consumers before the stated billing date and during free trials, which led to unexpected charges for consumers. According to the complaint, many Uber One memberships were charged 24 to 48 hours before their stated billing date. Consumers who tried to cancel within their last 48 hours of the free trial often found they were already enrolled in and charged for the subscription before their free trial ended.

The complaint alleged five counts: misrepresentations in violation of the FTC Act; unfairly charging consumers without consent in violation of the FTC Act; failure to provide required disclosures in violation of the Restore Online Shoppers’ Confidence Act (ROSCA); failure to obtain express informed consent before charges in violation of ROSCA; and failure to provide simple mechanisms for stopping recurring charges in violation of ROSCA. The FTC seeks injunctive and monetary relief.

“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said FTC Chairman Andrew N. Ferguson, in a press release. “The Trump-Vance FTC is fighting back on behalf of the American people. Today, we’re alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel.”

The Case is No. 3:25-cv-03477.

Judge: Beeler, L.

Companies: Uber Technologies, Inc.

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