The Federal Trade Commission set up a trial on Monday against Uber, claiming that the greeting of the travel and the delivery giant charged clients for his reconciliation service without their consent. Judicial proceedings also claim that Uber failed to secure the promised savings in his reconciliation service and made it difficult for users to cancel despite his promises “cancel at any time”.
Uber has denied any wrongdoing and has accused FTC of rushing the investigation process and baseing his claims on “non -defined claims”.
Judicial proceedings come after FTC has postponed companies with subscription services to make them easier to cancel under its previous director, Lina Khan. In October 2024, the agency completed its “Click to Canceled” rule that requires companies to cancel a reconciliation so easy to register for one. Despite facing some challenges from industry groups, the rule is expected to take effect May 14.
“Americans are tired of registering for unwanted reconciliations that seem impossible to cancel,” FTC leader Andrew Ferguson said in a statement. “FTC Trump-Vang is fighting back on behalf of the American people.”
The FTC complaint, which follows an investigation that began last year, claims that Uber customers were mistakenly promised $ 25 a month.
“Even if it were true, Uber does not calculate the cost of reconciliation (up to $ 9.99/month) when calculating those savings,” a statement from FTC said. “The company also obscures material information about reconciliation (for example, using the small, minced text that customers can easily lose).”
The complaint accuses Uber of automatic consumer uploading that were registered for a free trial before their billing date. He also claims that Uber makes “extremely difficult” for customers to cancel, where users can be forced to sail “up to 23 screens and take as many 32 actions to cancel”. These actions come in the form of explanation why they want to cancel, dealing with Uber by encouraging them to stop their membership, and if this fails, presenting offers to stay.
“Some users are told they should contact the customer’s support to cancel, but they are not given any way to contact them; others claim that Uber loaded them for another billing cycle after seeking cancellation and were waiting to hear from the client’s support,” the FTC statement said.
Uber explained that earlier, clients who wanted to cancel within 48 hours of their registration had to contact the customer’s support to cancel. The company says it is no longer the case. Techcrunch has managed to learn when Uber updated its policy to allow those customers to cancel within the app.
Plaintiffs are pushing the court to stop Uber from continuing its alleged fraudulent practices and force the company to pay monetary relief.
“We are disappointed that FTC chose to move forward with this action, but we are sure that the courts will agree with what we already know: someone’s Uber recording and cancellation processes are clear, simple and follow the letter and spirit of law,” said a Uber spokesman in a statement. “Uber does not register or charge customers without their consent, and cancellations can now be made at any time within the app and take most people 20 seconds or less.”
Tim Muris, a former FTC chairman who represented Uber during the investigation period, accused the FTC of failing to make a full investigation and supporting his complaint in “misunderstandings of facts and law”.
Uber’s current external adviser, Christine Wilson, said, “unconventional nature of the hasty investigative process preceding this action was complicated by the addition of new and not defined accusations in the last minute. It is disappointing to see FTC Stray from the strictness and justice that has long determined its agency.”
Uber member base reached 30 million in 34 seats in 2024, and the company says it is growing approximately 60% year by year. A year ago, Uber Director General Dara Khosrowshahi estimated that someone’s Uber membership fees would be “more than $ 1 billion” in 2024.
