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FTC Takes Action Against Uber for Alleged Deceptive Practices
The U.S. Federal Trade Commission (FTC) has initiated a lawsuit against Uber, claiming that the ride-hailing and delivery platform has been involved in misleading billing and cancellation practices.
The consumer protection agency asserts that Uber collected payments for its Uber One subscription service without explicit consent from users and complicated the cancellation process for those who wish to opt out.
FTC Chairman Andrew Ferguson, appointed during the Trump administration, emphasized the agency’s commitment to protecting consumers. “The Trump-Vance FTC is fighting back on behalf of the American people,” he stated in an announcement regarding the lawsuit.
In response to the allegations, an Uber representative expressed disappointment that the FTC chose to pursue legal action against the company. Uber contends that the claims are unfounded.
Uber One, launched in 2021, offers subscribers benefits such as no-fee delivery and discounts on certain rides and orders for a monthly fee of $9.99 or an annual fee of $96.
The FTC’s complaint highlights that consumers have found it “extremely difficult” to cancel their subscriptions, with reports indicating that canceling could require navigating up to 23 screens and completing as many as 32 actions.
Uber has countered these claims with a point-by-point rebuttal, asserting that, “Cancellations can now be done anytime in-app and take most people 20 seconds or less,” stated Uber spokesman Ryan Thornton. The company has updated its cancellation policy, allowing customers to terminate their subscriptions at any time rather than requiring them to contact support within 48 hours of the next billing cycle.
Further, the FTC alleges that numerous customers reported being enrolled in Uber One without their consent, citing a specific incident where a consumer claimed to be charged for the service despite not having an Uber account. On this matter, Uber asserts, “We do not sign up or charge consumers without their consent.”
This lawsuit against Uber stands out as the FTC’s first significant legal move against a prominent U.S. tech entity since President Trump began his second term in January. It follows an ongoing case involving Meta, formerly known as Facebook, concerning allegations of monopolistic practices tied to its acquisitions of Instagram in 2012 and WhatsApp in 2014. That case is currently in its second week of trial. Meta has labeled the FTC’s lawsuit as “misguided,” given that the agency had previously reviewed and approved the contested acquisitions.
Source
www.bbc.com