The US Federal Trade Commission (FTC) has filed a lawsuit against Uber, claiming that the company has engaged in deceptive billing and cancellation practices. The FTC accused Uber of charging customers for its Uber One subscription service without their consent and making it difficult for users to cancel.
FTC Chairman Andrew Ferguson, who was appointed by Trump, stated that the FTC is taking action on behalf of the American people. Uber denied the allegations and expressed disappointment that the FTC decided to pursue the lawsuit.
The Uber One subscription service, launched in 2021, offers perks such as no-fee delivery and discounts on rides and orders. It can be purchased for $9.99 per month or $96 per year. However, the FTC claimed that canceling the subscription is extremely difficult, with consumers having to go through up to 32 actions and navigate 23 screens.
Uber disputed this claim, stating that cancellations can be done in-app in less than 20 seconds. The company also stated that previously, cancellations could only be made within 48 hours of the next billing period, but now customers can cancel at any time.
Additionally, the FTC alleged that many consumers were enrolled in Uber One without their consent. Uber stated that they do not sign up or charge customers without their consent.
This lawsuit marks the first legal action taken by the FTC against a major US tech company since President Donald Trump took office. The agency’s case against Meta, initiated during the first Trump administration, is currently in its second week of trial. The FTC alleges that Meta monopolized social media through its acquisitions of Instagram and WhatsApp. Meta has called the lawsuit from the FTC “misguided.”
Source: https://www.bbc.com/news/articles/c1drkq0dy07o
