Uber Faces Amended Lawsuit from FTC, Several U.S. States Alleging Deceptive Billing, Cancellation Practices — Update

By Kelly Cloonan

Several U.S. states joined the Federal Trade Commission in suing Uber over deceptive billing and cancellation practices regarding its subscription service.

The amended complaint, filed Monday, garnered participation from 21 states and the District of Columbia. It includes a request for civil penalties, alleging the company violated state and federal laws.

The lawsuit, which was originally filed by the FTC in April, alleged that the ride-hailing company's Uber One subscription service charged consumers without their consent, failed to deliver promised savings and made it difficult for users to cancel.

According to the complaint, some customers who signed up for a free trial were automatically charged for the subscription before their trial ended, while others were charged for the service despite never knowingly signing up for it.

The lawsuit also said Uber made it difficult for users to cancel the service despite its "cancel anytime" promises, with some users navigating as many as 23 screens to cancel. Some users also did not receive the service's promised savings of $25 a month and $0 in delivery fees, according to the complaint.

According to the lawsuit, those practices violate several state laws as well as the Restore Online Shoppers' Confidence Act, which requires online sellers to clearly disclose certain terms, obtain consumers' consent before charging for a service and provide a simple way to cancel a recurring subscription.

Uber said the subscription service's sign-up and cancellation processes are clear and follow the law.

"If this lawsuit were to succeed, it would upend how virtually every modern subscription service operates," Uber said in a statement, adding the company plans to defend the lawsuit's claims in court.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

December 15, 2025 14:09 ET (19:09 GMT)