FTC sues Uber One by saying it “deceived the consumer”
The Federal Trade Commission is suing what RideShare Company Uber calls deceptive business practices, including Uber One’s subscription services. Complaint The FTC filed in the San Francisco District Court cites an instance in which the customer says they were charged for the service if the customer was believed to have been cancelled or that they were not allowed to cancel their account easily.
Uber One As it costs $10 a month, users will receive discounts, Uber meals and free cashback delivery in addition to other perks.
However, according to the FTC, customers who signed up for the free trial were difficult to cancel and incurred unexpected fees.
“Today, we argue that Uber not only tricked consumers about subscriptions, but also made it unfairly difficult for customers to cancel,” said FTC Chairman Andrew N. Ferguson. In a press release.
The complaint cites an instance that requires 23 screens and 32 actions to cancel your Uber One subscription.
An Uber spokesperson said the company had not signed up or charged without consent and “cancellations can be made at any time and most people can take them within 20 seconds.”
“We are disappointed that the FTC has chosen to move forward with this action,” the spokesman told CNET.
In an email, Uber said it would fight points over FTC complaints and disclose information about what customers would be charged. “Consumers who cancelled would not charge an additional fee,” he said.
Crosshair subscription service
Subscription services have recently become the target of FTCs. Rules have been implemented Request businesses to make cancellations simpler and easier. Last year, California Passed the law For consumers, it should be as easy as a single click. The changes were largely enacted in combat. An increasingly sophisticated way The company kept its customers on the hook for paid services.
Professor Syracuse University Law hopes that FTC will take action on businesses that do not follow subscription rules. Shubha Ghoshfocuses on business, antitrust and intellectual property laws.
“It’s very likely that there will be more suits as the FTC seeks to address anti-competitive practices that harm consumers throughout the administration, particularly those that raise prices and limit consumer choices,” Ghosh told CNET. “Ticketmaster is an example. You may see online actions on encryption and payday loans.”
However, if you feel you have been used for subscription-based services, don’t expect compensation from these FTC lawsuits. For clients, it is not the same as a class action lawsuit in which the plaintiff may earn money from damages designated in the court, Ghosh said.
“The FTC will not be able to restore consumer recovery after the Supreme Court’s unanimous decision (involving the 2021 case). AMG Management“However, FTCs can change business practices through injunctive relief under the Federal Trade Commission Act. FTCs can also obtain a refund for violations of the Fair Credit Reporting Act and (better online ticket sales) Act.”