Uber's Subscription Service Under Fire: The FTC's Big Move

The Federal Trade Commission (FTC) took a significant step by filing a lawsuit against Uber. The issue? Uber's subscription service, Uber One. The FTC claims that Uber has been misleading customers about the benefits and costs of this service. They also argue that Uber makes it too hard for users to cancel their subscriptions and charges users without their explicit consent. The FTC's complaint is serious. They accuse Uber of violating both the FTC Act and the Restore Online Shoppers' Confidence Act. This is not just about a few unhappy customers. It's about a pattern of behavior that the FTC believes is deceptive and unfair. The FTC Chair, Andrew Ferguson, made it clear that the agency is taking a strong stance against companies that sign up customers for unwanted subscriptions. This is not the first time the FTC has gone after big tech companies. They have ongoing lawsuits against other giants like Meta, Google, and Amazon. Uber, however, has a different story to tell. A spokesperson for the company, Noah Edwardsen, said that Uber is disappointed with the FTC's complaint. He insisted that Uber's sign-up and cancellation processes are clear and simple. He also stated that Uber does not charge customers without their consent. According to Edwardsen, cancellations can be done anytime in-app and usually take less than 20 seconds. So, what is Uber One? It's a subscription service launched in 2021. For $9. 99 a month or $96 a year, subscribers get perks like fee-free delivery and discounts on rides and orders. As of December, Uber had about 30 million subscribers to this service. The FTC, however, argues that Uber advertises savings without clearly stating the cost of the membership. They also accuse Uber of charging customers before their billing date. The FTC's complaint also highlights the difficulties users face when trying to cancel their Uber One subscription. Some users are told to contact customer service, but there's no clear way to do so. Worse still, some users claim they were charged for another billing cycle even after canceling their subscription. The FTC's move against Uber is part of a broader effort to scrutinize major tech companies. Ferguson has made it clear that big tech is a priority for the agency. This lawsuit is a clear signal that the FTC is serious about protecting consumers from deceptive practices. It's a reminder that even big companies have to play by the rules.