Feds accuse Uber of charging customers for subscriptions without consent

Core Viewpoint - The Federal Trade Commission (FTC) has filed a lawsuit against Uber, alleging unauthorized charges for its Uber One subscription service and failure to deliver promised savings, while making cancellation difficult for users [1][2][3]. Group 1: Allegations Against Uber - The FTC claims that Uber charged customers for its subscription service without consent and did not provide the promised savings of $25 per month [2]. - The lawsuit alleges that Uber obscured important information about the subscription, using small text that consumers might miss [3]. - Customers reportedly faced a complicated cancellation process, requiring navigation through up to 23 screens and 32 actions, including justifying their cancellation [3][4]. Group 2: Uber's Response - Uber has denied any wrongdoing, asserting that its sign-up and cancellation processes are clear and compliant with the law [6]. - The company claims that it no longer requires customers to contact support for cancellations within 48 hours of sign-up, allowing in-app cancellations [5][6]. - Uber's spokesperson expressed confidence that the courts will support their position, emphasizing that cancellations can now be completed in about 20 seconds [6]. Group 3: Regulatory Context - The lawsuit follows the FTC's push for easier cancellation processes for subscription services, culminating in the "click to cancel" rule set to take effect on May 14, 2024 [1]. - The FTC's investigation into Uber began last year, indicating a broader regulatory scrutiny of subscription practices in the industry [2]. Group 4: Uber One Membership - Uber One's membership base reached 30 million across 34 countries in 2024, with a year-over-year growth rate of approximately 60$1 billion in 2024 [6].