Twenty-one states join FTC lawsuit against Uber over ‘free-trial scam’

Twenty-one states and the District of Columbia have joined the Federal Trade Commission’s amended lawsuit against Uber, accusing the ride-hailing company of enrolling consumers in its Uber One subscription without consent and making cancellation so burdensome that many users stay charged after a free trial ends. The filing expands a case the FTC originally launched in April against the company.

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 customers were signed up for the service without permission and charged before their free-trial period concluded. In at least one instance, the agency notes, a person was charged the monthly fee even though they did not have an Uber account. The complaint also highlights how difficult it can be to cancel: the agency says users must navigate at least 12 different steps across seven screens to end their Uber One membership, with the process becoming even more onerous within 48 hours of a billing date, potentially requiring as many as 23 screens or direct contact with customer service.

D.C. Attorney General Brian Schwalb and other state attorneys general described the practices as deceptive and unfair. Maryland Attorney General Anthony Brown said, “Free trials should actually be free – not traps that lock Marylanders into unwanted monthly charges,” and noted the lawsuit aims to restore a straightforward path to canceling Uber One. DC Attorney General Schwalb added that more than 100,000 District residents are paying for Uber One and should have an easy way to end the subscription if they no longer wish to use the service. In addition to the District of Columbia, the states joining the amended complaint 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.

“Deceptive enrollment and billing practices have no place in the marketplace,” Virginia Attorney General Jason Miyares said in a news release accompanying the filing. Uber, for its part, has defended its process, saying the sign-up and cancellation experience is straightforward, simple and lawful and that the company does not sign users up for Uber One or charge them without permission. The filing signals ongoing regulatory scrutiny of subscription-based services as states seek to curb practices that can trap consumers in recurring charges.

The amended complaint adds the 21 states and DC to the FTC’s original allegations and underscores the broader push among state attorneys general to police online sign-up and billing practices. While Uber maintains that its platform operates in a transparent and lawful manner, regulators say the alleged design of the enrollment and cancellation flow undermines consumer choice and could lead to unwitting charges. The case continues to unfold as lawmakers and enforcers scrutinize how online subscriptions are marketed, renewed, and canceled in a digital economy where auto-enrollment and opt-out flows are common.