Uber faces FTC lawsuit over billing for Uber One

The Federal Trade Commission (FTC) is targeting Uber’s Uber One subscription service in a new lawsuit filed against the passenger company.

The agency filed a lawsuit against Uber on Monday, and announced it had alleged it. company It defeated the FTC Act and the Restoration Online Shopper Trust Act (ROSCA) through a “deceptive claims and cancellation practice” with Uber One.

The lawsuit asked US District Court for the Northern District of California Issues permanent injunctions to “prevent future violations” of these laws and grants financial and “other relief.”

On August 15, 2019, Federal Trade Commission Headquarters in Washington, DC. (Andrew Haller / via Bloomberg / Getty Images)

Uber failed to charge consumers for Uber One’s subscription services without consent, providing promise savings, making it difficult for users to cancel the service despite being “cancelled at any time”.

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In the lawsuit, the FTC said consumers were complaining that they were registered with Uber One subscription Without their consent, they report that they have never signed up and that they don’t know why they are being charged. ”

The FTC has been hit with customers using Uber One’s free trial period with a fee of “before the set bill date, during the free trial period.”

Uber head office in San Francisco on July 23, 2024. (David Paul Morris / via Bloomberg / Getty Images)

The Uber One comes with a price tag of $9.99 per month ($99.99 if purchased over a year). Subscribers Make a profit Earn Uber credits on the vehicle, including zero delivery charges for minimum diving money orders.

The FTC alleges that if Uber is Uber, Uber has “enacted a cancellation process that is difficult, time-consuming and far from simple,” and said subscribers must click and scroll through numerous screens before doing so.

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Some Uber One subscribers “claimed that after Uber requested a cancellation, they charged a separate billing cycle and were waiting for a reply from customer support,” the agency alleged.

Agents are also having problems with Uber saying that by signing up for Uber, consumers can save $25 a month. In a press release, the company claimed that it “does not take into account the costs of the subscription.”

An Uber spokesperson said Fox Business The company said “we were disappointed that the FTC chose to proceed with this case, but we are confident that the court will agree to what we already know. Uber’s sign-up and cancellation process is clear, simple and follows the letters and spirit of the law.”

“Uber will not sign up or charge consumers without their consent, cancellations are made on the app anytime, allowing most people to take them for less than 20 seconds,” the spokesman said.

The illustration in the photo shows the Uber app logo that appears on your phone as it is held for a photo posed in London on August 17, 2016. (Neil Hall/Illustrations/File Photos/Reuters Photos)

Tim Muris, Sidley’s attorney who represented Uber during the litigation period, said he was “disappointed that the FTC filed this lawsuit without a full investigation and serves as the basis for complaints about both factual and legal misconceptions.”

Uber debuted its first Uber One membership program in late 2021.

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In early February, when the company reported its fourth quarter financial results, Uber said its Uber 1 member base, available in nearly 30 countries, reached 30 million.

CEO Dara Khosrowshahi said in his revenue that it was a great months for Uber One membership, adding 5 million members in the quarter, increasing the total member base to 30 million, and increasing its year-on-year mark.