FTC and 21 States Expand Lawsuit Against Uber Over Subscription Billing Practices

The US Federal Trade Commission (FTC), joined by 21 US states and the District of Columbia, filed an amended complaint, intensifying their lawsuit against Uber Technologies over alleged deceptive billing and cancellation practices tied to its Uber One subscription service.

The amended filing expands a case first brought by the FTC in April 2025, which accused Uber of enrolling consumers into paid subscriptions without clear consent, charging users before free trials ended, and making it unreasonably difficult for users to cancel their memberships. By adding state attorneys general as co-plaintiffs, the case now combines federal enforcement with state consumer protection laws, increasing the potential penalties and remedies.

According to the complaint, Uber promoted Uber One with promises of savings and benefits such as $0 delivery fees, while allegedly failing to clearly disclose limitations or ensure that customers actually received those benefits. Regulators also argue that Uber’s cancellation flow contradicted its “cancel anytime” messaging, forcing some users through multiple screens and steps to end their subscriptions.

The FTC and states are seeking civil penalties, consumer refunds, and court orders that would bar Uber from continuing the challenged practices. The case relies in part on the Restore Online Shoppers’ Confidence Act (ROSCA), a federal law designed to prevent deceptive negative-option and subscription billing schemes.

Uber has denied the allegations, stating that customers are only charged with consent and that its current app allows cancellations to be completed quickly. The company has said it has already made changes to its subscription and cancellation processes since the initial complaint.

According to Reuters, Uber shares fell more than three percent, following news of the amended filing, reflecting investor concern over heightened regulatory scrutiny.

With federal and state authorities now aligned, the lawsuit is being closely watched as part of a broader crackdown on so-called “dark patterns” and subscription traps across digital platforms.

Earlier this month, Uber AI Solutions, a new division of Uber that launched in June 2025, began recruiting travel experts to assist in training advanced AI systems. The company has been strengthening its role in travel, moving beyond go-to airport rides to deeper integrations with airlines, online travel agencies, and loyalty programs.

Cover photo by Jon Tyson on Unsplash