Federal Trade Commission Files Lawsuit Against Uber over Alleged Misrepresentation of Subscription Service
Aspiring Ride-Hail Ruckus: FTC Takes Uber to Task Over Subscription Service
In a fresh round of Big Tech-bashing, the US Federal Trade Commission (FTC) is giving ride-hailing giant Uber a piece of its mind, filing a lawsuit that accuses the company of making "misleading" statements regarding its subscription service, Uber One. This action is yet another indication that Donald Trump's regime is maintaining an aggressive stance against tech titans.
The FTC rolls the dice, alleging that Uber's subscription service doesn't meet its promises, particularly in terms of savings and the ability to cancel anytime, as advertised. According to a complaint filed in a California court on Monday, Uber One doesn't factor the subscription cost into its savings calculations and makes it challenging for users to cancel the service.
FTC chief Andrew Ferguson was none too pleased, declaring, "People today are sick and tired of being signed up for undesirable subscriptions that are nigh impossible to quit." Ferguson claimed Uber had deceived consumers about their subscriptions while also complicating the cancellation process.
This legal tussle follows a string of lawsuits against large tech companies by various US administrations. The case signals that the Trump administration will persist in its clampdown on these companies despite recent attempts at diplomacy by tech honchos.
Uber speedily defended itself, stating that their sign-up and cancellation processes are "clear, uncomplicated, and in line with legal requirements." Oddly enough, Uber and CEO Dara Khosrowshahi chipped in $1 million each towards Trump's inauguration earlier this year, joining a list of American companies and executives that made similar contributions.
Other tech bigwigs—namely Apple, Amazon, Meta, and Google—are also in hot water, facing antitrust legal challenges from the FTC and the Department of Justice. Some of these cases have already gone to trial.
Tech moguls attended Trump's inauguration ceremony, and Amazon's Jeff Bezos and Meta's Mark Zuckerberg have recently held meetings with the president at the White House. Despite these feel-good initiatives, Ferguson, appointed by Trump to lead the FTC, has continued to be a thorn in Big Tech's side, accusing them of censorship. He has continuously hinted at sustaining the industry's reckoning initiated by his predecessor Lina Khan.
Ferguson added, paraphrasing the US vice-president JD Vance, "The Trump-Vance FTC is fending off on behalf of the American people."
FTC lawyers claimed in court filings that Uber falsely stated users would save around $25 a month through the $9.99 service but failed to account for the cost of the subscription in their calculations. Furthermore, they asserted that Uber made it arduous for users to cancel the service, requiring them to navigate a maze-like interface with multiple screens.
Uber countered by stating, "Uber does not subscribe nor charge consumers without their consent, and cancellations can now be carried out in-app in most cases within 20 seconds."
Unfortunately for Uber, this is not their first rodeo with the FTC. During Trump's initial term, the FTC sued Uber over claims that the ride-hailing app mishandled personal data and inflated earnings projections for prospective drivers. Uber eventually settled both lawsuits and agreed to pay a $20 million settlement to provide refunds to affected drivers.
More recently, the FTC, now under Biden's administration, has set its sights on Amazon's Prime subscription service, slated to be heard later this year in Seattle. Stay tuned!
- The FTC's lawsuit against Uber over its subscription service, Uber One, suggests that refunds might be a possibility for consumers who feel deceived by Uber's misleading claims about savings and cancellation anytime.
- Despite Uber's claims of clear and uncomplicated sign-up and cancellation processes, the FTC alleges that Uber One's service is challenging to cancel, potentially leading to lawsuits and further scrutiny of Uber's practices.
- Following Uber's legal troubles with the FTC, technology companies such as Apple, Amazon, Meta, and Google are also facing lawsuits over antitrust issues, indicating a continued focus on technology companies by regulatory bodies in the US.
