FTC sues Uber, rejects claim customers can cancel in 20 seconds

The Federal Trade Commission sued Uber Technologies on Monday over claims that it charged customers for premium memberships, known as Uber One, without their consent and "employed a series of obstacles" to deter consumers from cancelling. Uber denied wrongdoing and said it takes less than 20 seconds to cancel.

The lawsuit, filed in federal court in San Francisco, seeks a permanent injunction as well as monetary damages on behalf of customers who claim they were wrongly "being trapped" by Uber's recurring charges for Uber One memberships they did not sign up for. Their complaint says they had to "navigate a maze" to cancel the memberships, which cost $9.99 a month, or $96 annually.

Uber's media relations office wrote in an email Monday, "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. 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."

FTC chairman Andrew N. Ferguson said in a news release Monday, "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."

The requested permanent injunction seeks to require Uber to cease allegedly deceptive billing practices that the government claims violate the FTC Act and the Restore Online Shoppers' Confidence Act, or "ROSCA" Act. The law requires online businesses to disclose the terms of the service clearly, secure consumers' consent before charging them for a service, and offer simple methods to cancel recurring subscriptions. Federal Trade Commission v. Uber Technologies, Inc. et al., 3:25-cv-03477 (N.D. Cal. filed April 21, 2025).

In the complaint attorneys from the FTC claimed that Uber essentially deprived consumers of the opportunity to cancel within 48 hours of being charged for the memberships.

"Despite advertising that consumers can cancel 'anytime,' Uber One cancellation is actually time-restricted, time intensive, and often ineffective," the complaint stated. "As detailed below, Uber utilizes various tactics that prevent or make it hard for consumers to cancel, especially when they attempt to do so within 48 hours of their billing date, often snaring consumers into additional months or even years of a service they no longer want or need."