The U.S. Federal Trade Commission (FTC) has filed a lawsuit against Uber (UBER, Financial), accusing it of deceptive charges and complex cancellation processes in its Uber One subscription service. The FTC alleges that Uber's practices may violate the Federal Trade Commission Act and the Restore Online Shoppers' Confidence Act (ROSCA). Users were reportedly charged without clear consent, with some being auto-billed through partnerships with credit card companies. The cancellation process allegedly involves up to 32 steps across 23 pages, further complicating the issue.
Uber claims that its registration and cancellation processes are transparent and legal, with over 90% of users able to cancel in under 20 seconds. The company has made improvements based on previous FTC feedback, highlighting subscription fees and cancellation paths within the app.
This lawsuit is part of a broader FTC effort to address subscription service issues, having previously targeted companies like Amazon and Adobe for similar practices. Following the news, Uber's stock fell 3.08%, closing at $72.92, with a market value loss of approximately $3 billion. Despite this, analysts maintain an average target price of $88.93, suggesting a 23.89% upside potential.
