United States of America: Federal Trade Commission filed lawsuit against Uber for alleged deceptive billing and cancellation practices (Case No. 3:25-cv-03477)

On 21 April 2025, the US Federal Trade Commission (FTC) filed a lawsuit against Uber Technologies, Inc. and Uber USA, LLC at the US District Court for the Northern District of California. The lawsuit alleges violations of Section 5(a) of the FTC Act, prohibiting unfair or deceptive acts or practices in or affecting commerce and Section 4 of the Restore Online Shoppers’ Confidence Act (ROSCA), focusing on preventing unfair and deceptive Internet sales practices. The lawsuit relates to subscription-based digital services, specifically the Uber One membership programme. The complaint alleges that Uber misrepresented cancellation terms, failed to obtain express informed consent before charging customers, and did not provide a simple mechanism to stop recurring charges. It was also highlighted that consumers were often unknowingly enrolled in Uber One and faced a complex, multi-step cancellation process, especially near billing dates, resulting in unwanted charges. The FTC alleged that these practices constitute unfair and deceptive conduct under US consumer protection law. The FTC requested that the court issue a permanent injunction to prevent future violations of the FTC Act and ROSCA and award monetary and other relief.