21 States, DC Join FTC in Landmark Lawsuit Against Uber
▼ Summary
– Nearly two dozen states and Washington D.C. have filed an amended complaint in the FTC’s lawsuit against Uber.
– The lawsuit alleges Uber charged consumers for the Uber One subscription without their consent.
– It also claims Uber billed customers before the end of a free trial period.
– The complaint states Uber shared misleading claims about potential savings from the subscription.
– Subscribers allegedly faced a difficult cancellation process requiring up to 23 screens and 32 actions.
A coalition of attorneys general from twenty-one states and the District of Columbia has joined the Federal Trade Commission in a major legal action against Uber. The amended complaint, filed this week, accuses the ride-hailing giant of employing deceptive and unfair practices related to its Uber One subscription service. The lawsuit alleges a pattern of behavior that includes enrolling consumers without clear consent, imposing early charges before free trials concluded, and making questionable claims about potential savings.
Central to the case are accusations that Uber implemented a cancellation process described as unreasonably burdensome. According to the complaint, customers attempting to end their Uber One membership were allegedly forced to navigate a complex maze of prompts. The legal filing states this could involve tapping through as many as twenty-three different screens and completing a total of thirty-two separate actions just to unsubscribe. This labyrinthine procedure, the states argue, effectively traps consumers into paying for a service they no longer want.
Beyond the cancellation hurdles, the lawsuit details other problematic practices. It claims Uber charged users for the subscription without obtaining their affirmative consent, a fundamental requirement for transparent commerce. Furthermore, the company is accused of initiating billing cycles before advertised free trial periods had officially ended, catching customers off guard with unexpected charges. The legal action also challenges the veracity of Uber’s advertised savings, suggesting the company’s promotional claims about how much consumers could save with an Uber One membership were misleading and not substantiated.
This coordinated legal effort represents a significant escalation in regulatory scrutiny of subscription-based business models, particularly within the tech and gig economy sectors. The involvement of such a broad coalition of states underscores widespread concern over what officials describe as “dark patterns”, design interfaces that subtly manipulate user behavior. For consumers, the case highlights the importance of vigilance when signing up for any service with automatic renewal terms. It serves as a reminder to carefully review terms and conditions, note trial period end dates, and understand the specific steps required to cancel a subscription before committing.
(Source: The Verge)
