David Paul Morris, Bloomberg / Getty Images
Key Takeaways
- Uber shares fell Monday as the FTC filed a lawsuit alleging “deceptive billing and cancellation practices" related to the company's Uber One subscription service.
- The FTC stated that Uber charged users without their consent for Uber One subscriptions and made it difficult to cancel the service.
- Uber One costs $9.99 a month and includes 6% on rides, $0 on delivery fees for Uber Eats and other benefits.
Uber (UBER), a company that provides subscription services, saw its shares fall Monday after the U.S. Federal Trade Commission announced a lawsuit accusing the company of “deceptive practices in billing and cancellation” related to Uber One.
The FTC accused Uber for charging consumers for Uber One services without their consent. It also claimed that Uber failed to deliver on promised savings and made it difficult for customers to stop paying. Uber One costs $9.99 a month and includes 6% off rides, $0 delivery charges on Uber Eats and other benefits.
The FTC stated that Uber “obscures important information about the subscription”, in part by using small, gray text which is easy to miss. FTC says that some consumers have complained about Uber enrolling them in the service against their will.
Uber told Investopedia that they were disappointed that the FTC decided to pursue this action, but confident that the courts would agree with what they already knew: Uber One’s sign up and cancellation processes are simple, clear, and adhere to the letter and spirit the law. Uber does not sign up or charge consumers without their consent, and cancellations can now be done anytime in-app and take most people 20 seconds or less."
Uber shares fell 3% on Monday, but they have still gained over a fifth in value by 2025. The ride-hailing firm plans to release its first quarter earnings on May 7th.
