Nessel Joins National Lawsuit Accusing Uber of Consumer Entrapment

Michigan Attorney General Dana Nessel has collaborated with a coalition of 22 law enforcement agencies in a federal lawsuit against Uber Technologies, LLC. This action accuses the ridesharing company of trapping consumers in deceptive subscription cycles through its Uber One service.

Details of the Lawsuit Against Uber

This lawsuit, initially filed by the Federal Trade Commission (FTC), targets Uber’s marketing practices. The complaint was lodged in the U.S. District Court for the Northern District of California. It claims that Uber uses misleading strategies, often referred to as “dark patterns,” to bolster its profits.

Key Allegations

• Uber’s subscription service is marketed to help users save money on rides and food deliveries.
• The suit alleges the company engages in “negative option marketing,” leading to unauthorized charges after free trials lapse.
• Prosecutors argue that Uber overstated potential savings for subscribers of Uber One.
• Some customers reportedly faced charges before their scheduled billing dates, even during trial periods.
• The process to cancel Uber One is claimed to be intentionally obstructive, aiming to keep users subscribed.

Statements from Attorney General Nessel

Nessel emphasized the expectations consumers have when signing up for subscription services. She stated, “Consumers deserve straightforward access to savings and a hassle-free cancellation process.”

The lawsuit seeks restitution for affected Michigan residents. It also calls for civil penalties and a permanent injunction against Uber’s alleged unlawful practices, citing violations of the Michigan Consumer Protection Act and the federal Restore Online Shoppers’ Confidence Act.

Coalition of States Involved

Nessel is joined by a coalition that includes 19 other states such as Ohio, Illinois, and New York, alongside the District of Columbia and local prosecutors in California. Together, they aim to hold Uber accountable for its business practices.

Next Steps

A trial concerning these allegations is not anticipated to commence until February 2027. Meanwhile, Michigan residents who feel they have been unfairly charged can submit their complaints through the Attorney General’s Consumer Protection Team.