For Release
FTC and States File Amended Complaint Against Uber for Deceptive Billing and Cancellation Practices
Twenty one states and the District of Columbia join amended complaint seeking civil penalties
The Federal Trade Commission—joined by 21 states and the District of Columbia—today filed an amended complaint alleging that Uber charged consumers for its subscription without their consent, failed to deliver promised savings including $0 delivery fees, and made it difficult for users to cancel the subscription.
The FTC sued Uber in April over allegations it engaged in deceptive billing and cancellation practices related to its Uber One subscription. The states and the District of Columbia joined the FTC in filing the amended complaint, which includes a request for civil penalties for alleged violations of the Restore Online Shoppers’ Confidence Act and state laws. In addition to the District of Columbia, the states joining the FTC lawsuit 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, and Wisconsin.
Uber markets a monthly or annual subscription, Uber One, that it claims will qualify consumers for certain discounts or promotions, such as $0 in delivery fees and $25 in monthly savings. Some consumers say they did not receive the promised monthly savings or had to pay fees on deliveries despite the $0 delivery fee promise, according to the complaint.
Many consumers also say that Uber enrolled them in its Uber One subscription without their knowledge or consent and makes it exceedingly difficult to cancel, despite claims that consumers can “cancel anytime.” For example, many consumers who signed up for a free trial offer were automatically enrolled and charged for the subscription before the trial ended. Others report being charged for Uber One despite never knowingly signing up for the subscription at all. Users who try to cancel can be forced to navigate as many as 23 screens and take as many as 32 actions to cancel, according to the complaint.
The Commission vote authorizing the staff to file the amended complaint was 2-0. The complaint was filed in the U.S. District Court for the Northern District of California.
NOTE: The Commission files a complaint when it has “reason to believe” that the named defendants are violating or are about to violate the law and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court.
The lead attorneys on this matter are Paul Mezan, Stephanie Liebner, and James Doty in the FTC’s Bureau of Consumer Protection.
The Federal Trade Commission works to promote competition and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.