BIG BREAKING: Uber Charged For Deceptive Billing And Cancellation Practices, Are Ride-Hailing Apps Playing With You?

The US Federal Trade Commission (FTC) has sued Uber, accusing it of signing up users for its Uber One service without consent through deceptive claims. In the lawsuit, the US agency said the ride-hailing app violated the FTC Act and the Restore Online Shoppers’ Confidence Act by misleading Uber One subscribers, who pay $9.99 a month to receive offers and discounts on Uber’s ride-hailing and food delivery services in the US.

“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel, FTC Chairman Andrew Ferguson said in a statement. “The Trump-Vance FTC is fighting back on behalf of the American people.” He alleged in the lawsuit that Uber’s claims that the Uber One subscription allows subscribers to save $25 a month are false, and its assurance that cancelling the subscription is easy is deceptive.

According to an Uber spokesperson, Noah Edwardsen, the company does not mislead its users. “We are disappointed that the FTC chose to move forward with this action, but are confident that the courts will agree with what we already know: Uber One's sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law,” he said in a statement.

However, the agency has accused Uber of not giving its users a straightforward option to cancel the subscription. It mentioned that “some users are told they have to contact customer support to cancel but are given no way to contact them,” while some other users have allegedly been mentioned in the lawsuit, saying Uber “charged them for another billing cycle after they requested cancellation and were waiting to hear back from customer support.”

“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,” said Uber, replying to the allegations.

Uber One subscriptions are also available in India, asking users to pay a monthly fee of ₹149 for 10 per cent credits on rides, finding top-rated drivers, getting priority support, and a complimentary Zomato Gold subscription for three months. FTC’s lawsuit against Uber could have a direct impact on the company’s India offering, which is currently available at a discounted price for better adoption in the company’s largest market.

Are Ride-Hailing Apps Tricking Users?

FTC’s crackdown on Uber’s alleged deceptive practices raises concerns about how ride-hailing apps often trick users into paying more or buying subscriptions they never wanted. Uber and Lyft — the second-largest ride-hailing app in the US — have previously faced allegations over misclassifying drivers as independent contractors to avoid paying them employee benefits in the US.

In India, Uber has faced penalties from the consumer protection agencies for overcharging users, contributing to “unfair trade practice” under the Consumer Protection Laws. In March 2024, a Chandigarh disputes redressal commission fined Uber ₹20,000 for charging a user ₹1,334 for an 8.83km ride. Earlier this year, Uber was ordered to pay ₹54,100 to a customer who missed their flight after Uber’s scheduled cab did not arrive on time.

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