San Francisco, CA, December 17, 2025
The Federal Trade Commission and 21 states have filed a lawsuit against Uber for allegedly engaging in deceptive practices related to its Uber One subscription service. The complaint points to unauthorized charges, unfulfilled promises, and complicated cancellation processes. As a result, civil penalties are being sought. Uber has denied the allegations, claiming that all charges are made with customer consent. The legal proceedings are currently underway in California’s Northern District Court, with significant implications for Uber’s business practices.
Federal Trade Commission and 21 States Sue Uber Over Deceptive Subscription Practices
San Francisco, CA – The Federal Trade Commission (FTC), alongside 21 states and the District of Columbia, has filed an amended complaint against Uber Technologies, Inc. and Uber USA, LLC, alleging deceptive billing and cancellation practices linked to its Uber One subscription service. The lawsuit, submitted in the U.S. District Court for the Northern District of California, accuses Uber of charging users without their consent, failing to deliver promised benefits, and creating barriers to cancellation. The FTC is seeking civil penalties for breaches of the Restore Online Shoppers’ Confidence Act as well as various state consumer protection laws. Uber has firmly denied the allegations, stating that all charges are made with customer consent and that cancellations are generally simple to execute.
Allegations Against Uber’s Subscription Practices
The amended complaint outlines several serious allegations against Uber:
- Unauthorized Charges: Consumers reportedly found themselves enrolled in the Uber One subscription without their knowledge, including users who signed up for free trials and were charged before the trial period concluded.
- Unfulfilled Promises: Users indicated they encountered delivery fees despite being promised $0 delivery fees, with many failing to receive the advertised monthly savings associated with the service.
- Complicated Cancellations: The process of cancelling the subscription allegedly required navigating up to 23 screens and completing as many as 32 steps, thereby complicating user exits significantly.
State Attorneys General Join the Lawsuit
Alongside the FTC, the attorneys general from Alabama, Arizona, Connecticut, the District of Columbia, Illinois, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Virginia, West Virginia, and Wisconsin have joined the legal action. These states assert that Uber’s practices violate state consumer protection laws and are seeking restitution, civil penalties, and an injunction against Uber.
Uber’s Response
In response to the allegations, Uber has categorically denied the claims, emphasizing that charges are made solely with the user’s consent and that the cancellation process is generally efficient. According to the company, most cancellations can be completed within 20 seconds through its app, allowing users to manage their subscriptions conveniently.
Background on Uber One Subscription Service
Uber One is offered as a monthly or annual subscription that includes features such as $0 delivery fees. The service is priced at $9.99 per month or $96 per year, with automatic renewal that charges customers’ credit cards unless they opt-out. The lawsuit claims Uber employed negative option marketing tactics, meaning users are automatically charged if they fail to cancel before the free trial period ends.
Impact on Uber’s Stock
Following the lawsuit’s announcement, Uber’s stock suffered a drop of over 3%. As of December 17, 2025, the company’s stock is priced at $79.61, reflecting a decrease of $1.31 (approximately 1.62%) from the previous day. The trading range saw an intraday high of $81.47 and a low of $79.26.
Legal Proceedings and Next Steps
The lawsuit is currently pending in the United States District Court for the Northern District of California, with the trial scheduled for February 2027. The coalition of state attorneys general is being led by Maryland’s Attorney General, and includes various others, as well as the District Attorney for Alameda County, California.
Consumer Guidance
Consumers who suspect they may have been impacted by Uber’s subscription practices are advised to file a complaint with their state’s attorney general or the FTC. It is advisable for consumers to carefully review subscription terms and keep a close eye on their billing statements to ensure the accuracy of charges related to their subscriptions.
Frequently Asked Questions (FAQ)
What is the FTC’s lawsuit against Uber about?
The FTC, along with 21 states and the District of Columbia, has filed an amended complaint against Uber, alleging deceptive billing and cancellation practices related to its Uber One subscription service. The lawsuit accuses Uber of charging consumers without consent, failing to deliver promised benefits, and making cancellations excessively difficult.
Which states are involved in the lawsuit against Uber?
The attorneys general of Alabama, Arizona, Connecticut, the District of Columbia, Illinois, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Virginia, West Virginia, and Wisconsin have joined the lawsuit.
What is Uber’s response to the allegations?
Uber has denied the allegations, stating that charges occur only with consumer consent and that cancellations are typically straightforward. The company asserts that the majority of cancellations take 20 seconds or less and can be done within the app at any time.
What is the Uber One subscription service?
Uber One is marketed as a monthly or annual subscription offering benefits such as $0 delivery fees. The service is priced at $9.99 per month or $96 per year and renews automatically, charging consumers’ credit cards or debiting their bank accounts on a recurring basis.
What should consumers do if they believe they were affected by Uber’s subscription practices?
Consumers who believe they may have been affected by Uber’s subscription practices are encouraged to file a complaint with their respective state attorney general’s office or the FTC. It’s advisable for consumers to review subscription terms carefully and monitor their billing statements regularly to ensure they are not being charged for services they did not authorize.
Key Features of the Uber One Subscription Service
| Feature | Description |
|---|---|
| Subscription Cost | $9.99 per month or $96 per year |
| Benefits | $0 delivery fees and more |
| Cancellation Process | Allegedly requires navigating up to 23 screens and taking as many as 32 actions. |
| Negative Option Marketing | Automatically charges consumers if they do not cancel before the trial ends. |
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