Uber under fire for alleged user manipulation tactics
San Francisco's Uber Trouble: The FTC Cries Foul 🚨
America’s tech watchdog, the Federal Trade Commission (FTC), has thrown a punch at ride-hailing giant, Uber, alleging underhanded tactics with its Uber One subscription service.
The SF-based unicorn, according to the FTC, has bamboozled users with its promotional offers for Uber One, tricking some into enrollment, and obstructing others when they try to hit the eject button.
"US consumers are sick and tired of finding themselves saddled with unwanted subscriptions that are a pain in the neck to cancel," said Andrew Smith, director of the FTC's Bureau of Consumer Protection, in a bombshell statement.
"We're taking Uber to the mat for misleading consumers about their subscriptions and making it a headache to cut the cord," he added.
Uber subscribers receive perks like ride discounts and savings on Uber Eats. The service gobbles up about $10 of your monthly dough. Uber lured users in by promising $25 worth of monthly savings, but the catch? That sweet deal didn't apply to Uber One subscription fees, nifty, right?
FTC's legal eagles argue that the sweet-talking Uber was playing dirty by misleading customers, and making it a hassle for them to ditch the Uber One subscription despite claiming they could nail the escape in no time.
Uber vehemently denies enrolling people without permission and clams that canceling Uber One subs is a cinch, wrapped up in less than 20 seconds in the app.
"We're knocked out that the FTC has decided to come after us. But we're pulling on our boxing gloves and ready for a showdown. We're confident that the courts will see through Uber's shenanigans and rule in our favor," responded an Uber spokesperson.
The Federal Trade Commission has charged Uber with violating a law meant to restore faith in digital services, and the lawsuit is currently being handled in the Northern District of California. If found guilty, Uber may face penalties and a court order to clean up its act. This legal tussle comes close on the heels of a 2022 DOJ case where Uber settled over disability discrimination allegations.
📝 Noteworthy Points:
- Unwanted Subscription Practices: Uber is accused of enrolling users without clear consent and making subscription cancellation difficult.
- Misleading Savings Promises: Uber subscribers were led to believe they would save $25 per month, but the savings weren't consistently delivered.
- Law Violations: The FTC alleges Uber violated the ROSCA and FTC Act with these practices.
- Case Status: Filed in the Northern District of California on April 21, 2025, with a 2-0-1 Commission vote.
- Despite Uber's claims about easy cancelation of Uber One subscription, the Federal Trade Commission (FTC) argues that the company made it difficult for customers to terminate their subscriptions, a practice that San might find misleading.
- Uber's promotional offers for Uber One subscription service, including promising $25 worth of monthly savings, were found to be misleading by the FTC, as the savings didn't apply to Uber One subscription fees.
- In response to the FTC's allegations, Uber denies enrolling people without permission and asserts that canceling Uber One subscriptions can be done in less than 20 seconds in the app.
- If the court finds Uber guilty of violating the Restore Online Shopper's Confidence Act (ROSCA) and the Federal Trade Commission Act, the company may face penalties and a court order to reform its business practices in technology and finance.
