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.
Don’t miss any of our unbiased tech content and lab-based reviews. Add CNET as a preferred Google source.
In an email to CNET, Uber refuted the FTC’s claims about its Uber One service, and said that millions of customers choose Uber One to save money on rides and deliveries and to take advantage of promotions.
“If this lawsuit were to succeed, it would upend how virtually every modern subscription service operates,” the company said in its statement. “Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law. Uber does not sign up or charge consumers without their consent, and cancellations can be done anytime in-app and take most people 20 seconds or less.”
On the FTC addendum filing, Uber said, “The FTC, and the states that have decided to join this misguided lawsuit, are wrong, and we will vigorously defend these claims in court.”
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.