FTC, 21 states sue Uber over ‘shady’ subscription billing

Core Viewpoint - Uber, once marketed as a cheaper and more convenient alternative to traditional taxis, now faces significant regulatory challenges regarding its subscription service, Uber One, which has drawn scrutiny for alleged deceptive practices and violations of consumer protection laws [2][3][4]. Group 1: Regulatory Challenges - The Federal Trade Commission (FTC) filed a lawsuit against Uber in April, alleging violations related to the Uber One subscription service, which has now garnered support from 21 states and Washington, D.C. [2] - The lawsuit represents one of the most serious regulatory challenges Uber has faced in recent years, focusing on issues such as unauthorized enrollment and premature charges [3][4]. Group 2: Subscription Service Issues - Uber One is designed to enhance customer loyalty and increase recurring revenue by offering perks like reduced delivery fees and discounts [4]. - Allegations against Uber include enrolling users without proper consent, charging users before free trials ended, and complicating the cancellation process [3][6]. Group 3: Consumer Protection Concerns - Regulators argue that Uber's practices violate consumer protection laws aimed at ensuring transparency and choice in subscription billing [4]. - The complaint highlights issues such as misleading savings claims and a confusing cancellation process that requires navigating multiple screens or contacting customer support [5][6].