FTC Sues Uber Over Deceptive Subscription Charges and Obstructive Cancellations

In a significant escalation of regulatory scrutiny, the Federal Trade Commission (FTC) has filed a lawsuit against Uber Technologies Inc., accusing the ride-hailing company of systematically enrolling users in its Uber One subscription service without proper consent, making exaggerated claims about savings, and intentionally designing an excessively complex cancellation process.

Unauthorized Charges and Uninformed Enrollment

The lawsuit, filed in April 2025 in federal court in San Francisco, stems from numerous consumer complaints that they were billed for Uber One, a service that costs $9.99 per month or $96 annually, without having knowingly subscribed. In some reported cases, users claim they were charged despite never having created an Uber account. Others were automatically transitioned from a free trial to a paid subscription before the trial ended, contradicting Uber’s stated policy that users could cancel at no cost before billing began.

The FTC also highlights the lack of transparency in Uber’s subscription disclosures. Subscription details were often buried in greyed-out text or displayed in locations easy to overlook, a tactic known in UX circles as a “dark pattern.” Once charged, many consumers faced major obstacles when attempting to cancel or secure refunds. Uber’s support documentation frequently deflected blame, suggesting charges could be due to family or friends using the account or attributing them to temporary authorization holds.

Misleading Savings Claims

According to the FTC’s complaint, Uber falsely advertised that Uber One subscribers would save about $25 per month. These advertised savings did not account for the subscription fee itself, a misleading omission that left customers with a distorted understanding of the plan’s value. The agency contends that this marketing misrepresentation contributed to consumers signing up under false pretenses.

The Cancellation Gauntlet

Among the most damning allegations is Uber’s deliberately obstructive cancellation system. The complaint details how users trying to end their Uber One membership were forced to navigate a maze of up to 23 screens and complete as many as 32 different steps. Even the minimum path to cancellation required seven screens and 12 interactions.

These screens often included mandatory survey questions, persuasive offers to pause rather than cancel the subscription, and prominently featured discounted re-subscription options. The design layout itself was inconsistent, buttons would change positions from screen to screen, further increasing user confusion. In the 48 hours before a billing date, users were previously unable to cancel via the app at all, and instead had to contact customer service, typically resulting in delays that led to another billing cycle being charged.

Uber recently changed this policy to allow in-app cancellations during that 48-hour window, but only after the FTC’s investigation had already commenced.

Regulatory Context and Company Response

This legal action is the latest in a series of FTC moves targeting “negative option marketing”, a practice in which consumers are automatically enrolled in paid services they must actively cancel. According to FTC Chairman Andrew Ferguson, the lawsuit is part of the agency’s broader “Trump-Vance FTC” initiative to protect consumers from predatory subscription practices.

Uber, for its part, has denied all allegations. In a statement, the company argued that the FTC had “rushed its investigation” and built its case on “unvetted allegations,” vowing to defend itself in court.

This isn’t Uber’s first entanglement with the FTC. In 2017, the company reached a settlement over misleading earnings claims to drivers. It has also previously faced scrutiny over data privacy practices.

Implications

The outcome of this case could set a precedent for how digital platforms are expected to handle subscriptions and cancellations. As regulators globally intensify their focus on consumer rights in digital marketplaces, the FTC’s challenge to Uber underscores growing intolerance for manipulative design and vague billing practices.

If successful, the lawsuit could not only lead to financial penalties for Uber but also force broader changes in how subscription services across the tech industry are offered, presented, and terminated.