Uber Subscription Battle Escalates as 21 States and DC Join FTC Lawsuit

Core Viewpoint - The Federal Trade Commission (FTC) has amended its lawsuit against Uber, alleging deceptive practices related to the Uber One subscription service, which includes unauthorized charges and difficulties in cancellation [1][2]. Group 1: Lawsuit Details - The amendment adds 21 states and the District of Columbia to the original complaint filed in California District Court in April [2]. - The FTC claims that Uber charged consumers for the subscription without their consent and failed to deliver promised savings, including $0 delivery fees [2]. - Uber One is priced at $10 per month or $100 per year, offering various discounts and perks [2]. Group 2: Uber's Response - Uber disputes the FTC's claims, stating that it does not charge consumers without consent and that cancellation can be completed in about 20 seconds [4]. - The company expressed disappointment over the FTC's decision to proceed with the lawsuit, asserting confidence that the courts will support their position on the clarity of the sign-up and cancellation processes [4]. Group 3: Legal Context - In 2024, there is a push for "click-to-cancel" rules to simplify subscription cancellations, although a federal version of this rule was nullified by an appeals court [5]. - California's Automatic Renewal Law mandates that businesses notify customers before subscription renewals and prohibits automatic renewals without consent, with similar laws in states like New York, Virginia, and Illinois [6].