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.