FTC is suing Uber over deceptive billing and cancellation practices

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The Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the company of misleading customers into signing up for its Uber One subscription service without proper consent and then making it hard for them to cancel. 

The Uber One plan offers certain benefits like discounted rides and deliveries for a $9.99 monthly fee. However, the FTC says many customers were enrolled without realizing it, and some didn’t even have an Uber account.

According to the FTC, when people used the Uber app, they were shown unclear or hard-to-read messages that promised savings, but didn’t clearly explain that they’d also be charged for a subscription. (Via: The Verge) 

The important details about the charges were often hidden in small, grey text, making it easy for users to miss. 

Some people said they were billed before their trial period ended, or even before the official billing date. 

Others said canceling the subscription was frustrating or nearly impossible, like being told to contact customer service but not being given a way to do so.

The FTC is asking the court to stop Uber from continuing these practices and to possibly require Uber to pay affected customers. Uber, however, denies the accusations. 

The company insists that it does not charge anyone without permission and that customers can now cancel their subscription easily from within the app, in less than 20 seconds. 

Uber says the FTC misunderstood both the facts and the law and claims its sign-up and cancellation processes are clear and legal.

Uber also shared support from former FTC officials, including Tim Muris, who represented the company during the investigation.

 He criticized the FTC for moving forward with the lawsuit, calling it unfair and based on incorrect assumptions.

The jury is still out on whether Uber tricked customers into unwanted subscriptions and made canceling too hard, or whether its systems are actually fair and legal, as Uber claims.

What do you think about this lawsuit? Do you think you’ve been a victim of these unfair practices? Tell us below in the comments, or via our Twitter or Facebook.