FTC and States Amend Complaint Against Uber for Deceptive Billing Practices

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FTC and States Amend Complaint Against Uber for Deceptive Billing Practices

The Federal Trade Commission (FTC), alongside 21 states and the District of Columbia, has filed an amended complaint against Uber. The allegations center on deceptive billing practices surrounding Uber’s subscription service, Uber One.

Key Allegations Against Uber

The amended complaint claims that Uber charged customers for its subscription without obtaining their consent. It also alleges that users did not receive the promised benefits, including $0 delivery fees and a reported $25 in monthly savings. Many users have expressed frustration over the difficulty in canceling their subscriptions.

Background on the Lawsuit

This legal action follows a suit filed by the FTC in April, which primarily addressed the deceptive billing and cancellation practices associated with Uber One. As part of the amended complaint, civil penalties have been requested for violations of the Restore Online Shoppers’ Confidence Act and relevant state laws.

States Involved in the Complaint

The states joining the FTC in this effort include:

  • Alabama
  • Arizona
  • California
  • Connecticut
  • Illinois
  • Maryland
  • Michigan
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • New Hampshire
  • New Jersey
  • New York
  • North Carolina
  • Ohio
  • Oklahoma
  • Pennsylvania
  • Virginia
  • West Virginia
  • Wisconsin

Consumer Experiences

Many consumers reported that they were automatically enrolled in the Uber One subscription without their knowledge. Some users who accepted a free trial found themselves charged before the trial concluded. These consumers claim they were caught off guard by fees and the lack of promised savings.

Moreover, the complaint highlights that canceling an Uber One subscription can be notably challenging. Users may face navigating up to 23 screens and completing as many as 32 steps to successfully cancel their subscription.

Proceedings in Court

The case was filed in the U.S. District Court for the Northern District of California. The FTC filed the complaint after a unanimous vote (2-0) to take action. The case will be addressed by the court, which will determine the outcome based on the outlined allegations.

Legal Representation

The lead attorneys handling this case are Paul Mezan, Stephanie Liebner, and James Doty, all from the FTC’s Bureau of Consumer Protection.