AG James Joins Bipartisan Coalition Suing Uber for Misleading Customers with Difficult to Cancel Uber One Subscriptions
New York Attorney General Letitia James and a bipartisan coalition of 20 other attorneys general joined a lawsuit previously filed by the Federal Trade Commission (FTC) against Uber Technologies, LLC and Uber USA, LLC (Uber) for misleading customers by trapping them in recurring subscriptions to its Uber One service that were exceedingly difficult to cancel. The lawsuit alleges that Uber deceptively marketed and pushed users to enroll in subscriptions to its Uber One service, which promises savings on ride bookings and food deliveries. Once enrolled, often without knowing they had signed up, users were charged $9.99 per month and forced to navigate a labyrinth of confusing menus to cancel their subscriptions. Attorney General James and the coalition argue that Uber’s actions violate state and federal consumer protection laws and are seeking restitution for consumers and a permanent injunction on Uber’s deceptive practices, among other relief.
“Unwanted subscriptions that are seemingly impossible to cancel are driving up costs for everyday New Yorkers,” said Attorney General James. “Companies should not be able to profit by tricking consumers into recurring charges that can require hours of difficult work to stop. Today I am taking action to put an end to Uber’s misleading tactics and get New Yorkers their money back.”
Uber offers the Uber One subscription service for $9.99 monthly or a $96 annual fee. In advertisements and notifications within the app, Uber promises consumers that an Uber One membership will save them money on food delivery and ride bookings, and that Uber One members can “cancel anytime” without additional fees. Once enrolled, users are charged automatically on a recurring basis for their Uber One memberships.
Attorney General James and the coalition argue that Uber has violated the law by misleading consumers into signing up for Uber One and trapping them in recurring subscriptions. Pop-ups and notifications in the Uber and Uber Eats apps push users to sign up for Uber One, and misstate the benefits and cost savings of the service to consumers. Uber falsely claims that consumers will “save $25 every month” with an Uber One subscription. In addition, Uber’s claim of $25 monthly savings does not account for the monthly fees that users have to pay to maintain their Uber One subscriptions.
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