By Kelly Cloonan

The Federal Trade Commission sued Uber over deceptive billing and cancellation practices regarding its Uber One subscription service.

The lawsuit, filed Monday, alleged that the ride-sharing company's subscription service charged consumers without their consent, failed to deliver promised savings and made it difficult for users to cancel.

The lawsuit said that some customers who signed up for a free trial were automatically charged for the service before their trial ended, even though the company promises the ability to cancel at no charge during the trial period.

The service also failed to deliver promised savings of $25 a month, with Uber failing to account for the cost of the subscription when calculating savings, according to the lawsuit.

Uber also made it difficult for users to cancel the service despite its "cancel anytime" promises, the FTC said. Users can be forced to navigate as many as 23 screens and take as many as 32 actions to cancel, according to the lawsuit.

The FTC said those practices violate the FTC Act and 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.

An Uber spokesman said that its practices do not violate the law.

"Uber One's sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law," the spokesman said, adding the company does not sign up or charge consumers without their consent, and that cancellations can be done anytime in-app and take most people 20 seconds or less.

Uber's stock fell 4% to $71.90 on Monday. Shares have risen 4% over the last 12 months.

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

(END) Dow Jones Newswires

April 21, 2025 13:52 ET (17:52 GMT)

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