The Federal Trade Commission’s lawsuit against Uber highlights significant concerns over consumer consent and cancellation difficulties, which the company firmly denies.
**FTC Takes Action Against Uber Over Alleged Deceptive Subscription Practices**
**FTC Takes Action Against Uber Over Alleged Deceptive Subscription Practices**
The lawsuit targets Uber for purportedly misleading billing and enrollment methods regarding its Uber One subscription service.
The US Federal Trade Commission (FTC) has initiated legal proceedings against Uber Technologies, Inc., accusing the company of deceptive practices associated with its subscription service, Uber One. The FTC contends that Uber charged customers for the service without appropriate consent and made cancellation procedures convoluted. FTC Chairman Andrew Ferguson, appointed during the Trump administration, emphasized that this action aims to protect American consumers.
Uber One, launched in 2021, comes with various benefits, such as reduced delivery fees and discounts on rides, for a monthly fee of $9.99 or $96 annually. According to the FTC's lawsuit, complaints indicate that users faced significant barriers to cancellation, with some reporting as many as 23 screens and up to 32 steps when attempting to terminate their service.
In response to these allegations, Uber’s spokesperson, Ryan Thornton, countered that cancelling the subscription has been streamlined and can be completed within 20 seconds through the app. He noted that the previous requirement of contacting support within a specific timeframe has been removed, allowing users to cancel at their discretion.
The FTC's complaint also mentions incidents where consumers were reportedly enrolled in Uber One without having consented to such actions. Uber firmly denies these claims, asserting it does not charge or sign up customers without their approval.
This lawsuit marks a pivotal moment for the FTC as the first legal action against a significant tech entity since the change in presidential administration in January. Meanwhile, litigation around another major case against Meta, formerly Facebook, continues, encapsulating a broader trend of regulatory scrutiny in the tech industry regarding business practices and consumer rights.
Uber One, launched in 2021, comes with various benefits, such as reduced delivery fees and discounts on rides, for a monthly fee of $9.99 or $96 annually. According to the FTC's lawsuit, complaints indicate that users faced significant barriers to cancellation, with some reporting as many as 23 screens and up to 32 steps when attempting to terminate their service.
In response to these allegations, Uber’s spokesperson, Ryan Thornton, countered that cancelling the subscription has been streamlined and can be completed within 20 seconds through the app. He noted that the previous requirement of contacting support within a specific timeframe has been removed, allowing users to cancel at their discretion.
The FTC's complaint also mentions incidents where consumers were reportedly enrolled in Uber One without having consented to such actions. Uber firmly denies these claims, asserting it does not charge or sign up customers without their approval.
This lawsuit marks a pivotal moment for the FTC as the first legal action against a significant tech entity since the change in presidential administration in January. Meanwhile, litigation around another major case against Meta, formerly Facebook, continues, encapsulating a broader trend of regulatory scrutiny in the tech industry regarding business practices and consumer rights.
