On April 21, 2025, the Federal Trade Commission (FTC) announced that it had filed a complaint against Uber Technologies, Inc. and Uber USA LLC (collectively, Uber), a rideshare and delivery company. Among other things, the FTC alleges in its complaint that Uber violated Section 5 of the FTC Act and the Restore Online Shoppers’ Confidence Act (ROSCA) by charging consumers for its Uber One subscription service without their consent and making it difficult for users to cancel the service despite its “cancel anytime” promises.

The Complaint

Background

According to the complaint, since November 2021, Uber has enrolled consumers into a subscription service called Uber One, which costs $9.99 per month for a monthly subscription or $96 per year for an annual subscription. Uber One subscriptions renew automatically, charging consumers on a month-to-month or yearly basis unless they take affirmative action to cancel by a certain date.

Counts

The complaint alleges that Uber violated the FTC Act, which prohibits deceptive and unfair practices. According to the complaint, consumers often did not understand that they were signing up for a service, due to confusing enrollment messaging. Further, Uber did not ask consumers to enter any billing information prior to enrollment, as that information is pre-saved in a consumer’s account. In addition, the FTC alleges that Uber offered a free trial period and told consumers that they would be charged on a specific date unless they cancelled beforehand; however, Uber allegedly billed consumers before the stated billing date.

Furthermore, the FTC alleges that Uber failed to process cancellation requests for some consumers, resulting in consumers having to expend significant time and effort requesting refunds; made consumers wait unreasonably long for customer support, leading consumers to be charged for another billing cycle while they waited to hear back; and charged consumers for an additional month or more, even after confirming cancellation before the billing date.

In addition, the complaint alleges that Uber violated ROSCA, which is a federal law that requires companies that offer subscription services with a negative option feature to 1) clearly and conspicuously disclose the material terms of the transaction; 2) obtain the consumer’s informed consent before charging them; and 3) offer a simple cancellation process.

• Failure to provide required disclosures. The FTC alleges that Uber obtained consumers’ billing information but failed to clearly and conspicuously disclose all material transaction terms, including 1) that consumers were being enrolled in a recurring paid subscription; 2) the amount that consumers actually save through Uber One; 3) when consumers will be billed or charged; and 4) the method of cancellation. The FTC alleges Uber made it difficult for consumers to cancel a subscription, especially in the final 48 hours of their trial or billing cycle when they are more likely to think about canceling. For example, the information presented to consumers about how to cancel and avoid charges within the 48-hour window simply directed them to “contact support” with no explanation of how to do so. In addition, the only place where Uber told consumers they could “cancel up to 48 hours before [the billing date] in the app” was in small, light gray fine print at the very bottom of the initial checkout page for one of its enrollment flows. The FTC alleges that this disclosure was small, confusingly worded, and failed to warn consumers how long cancellation would take outside the app or that Uber billed consumers before the promised billing date.
• Failure to obtain express informed consent before charges. The FTC alleges that
  Uber enrolled consumers in Uber One in a number of ways, including without consent, through push notifications, and in-app pop-ups advertising Uber One. Once consumers clicked a single button, they were allegedly immediately enrolled in the subscription service and charged before the end of the trial. In some instances, consumers were allegedly enrolled into Uber One through Uber’s partnerships with credit card companies, which enrolled consumers for free for several months before automatically charging them on a recurring basis.
• Failure to provide simple mechanisms for stopping recurring charges. The FTC alleges that Uber One cancellation was time-restricted, time-intensive, and often ineffective. Uber allegedly utilized various tactics that prevented or made it hard for consumers to cancel, especially when they attempted to do so within the final 48 hours of their subscription period. The FTC alleges that after navigating at least seven screens that require at least 12 different actions, only then, by selecting the “End Uber One” button, a consumer could actually cancel his or her subscription. For many consumers in the final 48 hours of their billing cycle, they allegedly were required to go through as many as 23 screens and take at least 32 actions (including scrolling, clicking, and typing), before having to wait hours or up to a full day for an Uber customer service representative to respond to their request and process their cancellation.

Key Takeaways

The FTC vote authorizing the complaint filing was 2-0 with Commissioner Mark Meador recused. FTC Chairman Andrew Ferguson stated, “Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel. The Trump-Vance FTC is fighting back on behalf of the American people. Today, we’re alleging that Uber not only deceived consumers about their subscriptions, but also made it unreasonably difficult for customers to cancel.” This may signal that under the new administration, the FTC’s consumer protection enforcement priorities will target outright deception and negative options features.

How can you ensure FTC compliance?

• Make accurate representations about your product.If you claim consumers can cancel their subscription any time without charge, make sure that’s actually the case. Present clear language around the enrollment flow and billing requirements.
• Bill customers on the stated billing date.
• Make it easy for consumers to cancel. Consumers should not have to navigate through many screens, confusing pathways, or wait for an unreasonable time for a response from customer service representatives.

Wilson Sonsini Goodrich & Rosati routinely helps companies navigate complex privacy and data security issues, including assisting numerous clients with developing information security programs, responding to security incidents and data breaches, and responding to FTC and other regulatory investigations. For more information, please contact Maneesha Mithal, Libby Weingarten, Angela Guo, or another member of the firm’s Data, Privacy, and Cybersecurity practice.