By Mackenzie Tatananni
Uber stock tumbled Monday after the Federal Trade Commission filed a lawsuit against the ride-hailing app, accusing it of misleading customers and failing to provide an easy way to cancel an Uber One subscription.
The FTC alleged that Uber charged customers for Uber One without their consent, wrongly promised savings, and made it difficult for users to cancel the service despite its "cancel anytime" tagline. The membership costs $9.99 a month and advertises discounts on ride bookings and food delivery.
Shares of the ride-hailing app fell 4.8% to $71.63 on the news. The S&P 500 was down 3.2%.
The company didn't immediately respond to a request for comment.
"For any consumer wishing to cancel Uber One, Defendants require them to take at least 12 different actions and navigate a maze of at least 7 screens, if they guess the right paths to use," the FTC wrote in its complaint, alleging that cancellation is even more difficult within 48 hours of customers' billing date.
Uber stands accused of violating the FTC Act and the Restore Online Shoppers' Confidence Act, which are meant to protect consumers from deceptive billing and advertising practices.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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(END) Dow Jones Newswires
April 21, 2025 14:03 ET (18:03 GMT)
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