The Federal Trade Commission has filed a lawsuit against Uber, alleging deceptive practices in its Uber One subscription service, including unauthorized enrollments and obstructive cancellation procedures.
At a Glance
- FTC accuses Uber of enrolling users into Uber One without consent
- Lawsuit claims cancellation process was excessively complicated
- Uber denies allegations, asserting compliance with legal standards
- FTC seeks injunction and monetary relief for affected consumers
FTC Alleges Unauthorized Charges
On April 21, 2025, the Federal Trade Commission (FTC) filed a lawsuit against Uber in the Northern District of California. The agency accuses the company of enrolling consumers into its Uber One subscription without their consent and making the cancellation process deliberately difficult. According to the FTC, users were misled about savings and sometimes billed before the end of a promised free trial.
FTC Chair Andrew N. Ferguson stated, “Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” emphasizing the commission’s mission to hold companies accountable. The FTC complaint noted that some users had to navigate up to 23 different screens and take 32 distinct actions just to cancel their subscription. The agency alleges these tactics violate both the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA), as reported by the Federal Trade Commission.
Watch CNBC’s report on the incident at FTC sues Uber on Monday, alleging deceptive billing practices.
Uber’s Response and Defense
Uber responded to the lawsuit by denying all allegations. A company spokesperson, Ryan Thornton, insisted that their subscription sign-up and cancellation processes are “clear and lawful.” He added that cancellations can now be completed in-app in under 20 seconds. Uber also noted that it had previously required consumers to contact customer service for cancellations close to the billing date but has since updated that policy. These comments were shared with Fox Business.
Former FTC Chair Tim Muris criticized the lawsuit, claiming it was filed “without a full investigation” and based on a “misunderstanding of both the facts and the law.” Uber, for its part, pointed to its robust growth in Uber One memberships—30 million members as of early 2023—as evidence that users valued the service, not that they were trapped by it.
Implications for Subscription Services
This lawsuit is the latest in a broader crackdown on so-called “dark patterns” in digital commerce—interfaces or user experiences designed to mislead consumers. The FTC’s legal action against Uber follows similar scrutiny of other tech giants, including Meta, which has also faced regulatory action for unclear subscription policies.
With more services relying on recurring billing, regulators are becoming increasingly aggressive about enforcing transparency. The outcome of the case could shape future expectations for subscription-based platforms and set precedent on how companies are allowed to promote, enroll, and cancel memberships in the digital economy.
As Reuters reported, Uber has faced multiple legal actions over the past decade, including a $20 million settlement in 2017 for inflating potential earnings to drivers and a 2018 privacy-related case. The FTC’s new lawsuit reinforces that even as companies evolve, their obligations to users must remain clear, fair, and enforceable.
