Uber Faces Multi-State Allegations Over Deceptive Subscription Enrollment Practices

Regulators allege that Uber has been systematically enrolling customers into its Uber One subscription service without obtaining proper consent. The Federal Trade Commission, joined by 21 states and the District of Columbia, expanded its enforcement action in federal court in Northern California, presenting evidence that the ride-sharing giant misled users about the service’s actual benefits and made cancellation unnecessarily complicated.

The Core Allegations

According to the complaint, Uber marketed Uber One with promises of up to $25 in monthly savings through $0 delivery fees and other benefits. However, many subscribers claim they never received the promised discounts or encountered hidden fees that contradicted the marketing claims. The regulators allege that the company enrolled customers without their knowledge—in some cases automatically converting free trial users into paid subscribers without explicit authorization.

The investigation also centers on what regulators describe as a deliberately obstructive cancellation process. While Uber’s marketing suggests users can quit “anytime,” the actual process requires navigating multiple screens and steps, creating friction that discourages subscription cancellations.

Timeline and Legal Framework

The FTC initially filed suit in April, but the updated complaint reflects an escalated enforcement effort with state attorneys general now formally involved. The unanimous FTC vote to proceed signals serious concerns about consumer protection violations. Regulators are seeking civil penalties under the Restore Online Shoppers’ Confidence Act and various state-level consumer protection statutes.

What’s Next

The case now rests with the federal court system to determine remedies and penalties. Uber has not yet publicly responded to the expanded allegations. The outcome could set precedent for how subscription services are regulated across the industry.