The Federal Trade Commission (FTC) filed a lawsuit against Uber on Monday, accusing the ride-hailing and delivery giant of charging consumers for its Uber One subscription without proper consent and making the cancellation process overly complex.
According to the FTC, Uber misled consumers with promises of savings up to $25 and began billing users before their subscription start date. The agency also claims that canceling the service could require navigating up to 23 different screens. The FTC says these actions violate the FTC Act and the Restore Online Shoppers’ Confidence Act.
Uber pushed back against the allegations. “Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law,” the company said, adding it’s “confident” courts will side with them.
Former FTC Commissioner Christine Wilson, now outside counsel for Uber, called the investigation rushed and “disappointing.” Uber shares fell 4% to $72 Monday afternoon.