Uber’s subscription battle escalates as 21 states and D.C. join FTC lawsuit

The Federal Trade Commission has I made an amendment to its lawsuit against the ride-sharing company Uber, alleging deceptive business practices related to its subscription service Uber One.

The amendment adds 21 states and the District of Columbia to the complaint It was filed in California District Court in April. In a press release about the amendment, the FTC said: “Uber charged consumers for its subscription without their consent, failed to deliver promised savings including a $0 delivery fee, and made it difficult for users to opt out.”

Uber One It costs $10 per month or $100 per year and offers discounts, free delivery on Uber Eats, cash back, and additional perks.

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An Uber representative did not immediately respond to a request for comment.

In April, Uber told CNET that it disputed points in the original FTC complaint, alleging that the company does not sign up or charge consumers for Uber One without their consent and that customers can cancel in its app, saying “(cancellations) take most people 20 seconds or less.” “Consumers who canceled Uber One never paid any additional fees,” Uber said.

“We are disappointed that the FTC has chosen to move forward with this action but are confident that the courts will agree with what we already know: Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law,” the company added at the time.

The amendment adds states including Arizona, California, New York and Pennsylvania to the case. Contrary to what Uber said, the FTC says Uber One’s cancellation could involve navigating “up to 23 screens and taking up to 32 actions.”

Legal headwinds

In 2024, there was widespread support in the federal government and in states like California for introducing “Click to cancel“Rules that require businesses to make it easier for customers to cancel unwanted subscriptions to online services.

However, A The Court of Appeal reversed The federal version of that rule is out this year.

ca Automatic renewal lawAt the same time, it requires businesses with customers in California to notify them when a subscription service is set to renew and prohibits automatic renewal of a subscription without their consent. Other states, including New York, Virginia and Illinois It has similar laws.