21 States Join FTC Lawsuit Against Uber Over 'Free Trial' Scam
Amended complaint alleges Uber enrolled users in Uber One without consent, charged fees, and made cancellation difficult, with 21 states and DC joining the action.
A coalition of 21 states and the District of Columbia has joined the Federal Trade Commission's amended lawsuit against Uber, accusing the ride-hailing company of deceiving consumers with a 'free trial' for its Uber One subscription. The FTC originally filed the complaint in April, alleging that Uber enrolled people in Uber One without their consent and charged them before the trial period ended.
The amended complaint says Uber's enrollment and billing practices enabled customers to be signed up for Uber One and billed for the monthly or yearly plan even if they did not authorize enrollment. Uber One costs $9.99 per month or $96 per year and includes perks such as cash back on Uber rides and free delivery fees on Uber Eats. The FTC says the company's cancellation process is deliberately burdensome, requiring at least 12 steps across seven screens, with steps multiplying to as many as 23 screens within 48 hours of a billing date, and often requiring customers to contact support.
In its amended filing, the states joining the action include Alabama, Arizona, California, Connecticut, Illinois, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Virginia, West Virginia and Wisconsin, along with the District of Columbia.
Maryland Attorney General Anthony Brown said, 'Free trials should actually be free – not traps that lock Marylanders into unwanted monthly charges,' and added that the suit aims to halt practices the state considers deceptive and unlawful.
D.C. Attorney General Brian Schwalb said the coalition seeks to protect more than 100,000 District residents paying for Uber One who want an easy way to cancel.
Virginia Attorney General Jason Miyares said, 'Deceptive enrollment and billing practices have no place in the marketplace.'
Uber said in a statement that its sign-up and cancellation processes are straightforward, simple and lawful, and that the company does not charge or enroll users without permission.
The case adds to growing enforcement actions against subscription traps and auto-renewal tactics in digital services, a priority as consumer costs rise.
If the lawsuit succeeds, regulators could seek injunctions, refunds for affected customers and changes to Uber's enrollment and cancellation processes.