21 States Join FTC Lawsuit Against Uber Over Deceptive Billing and Cancellation Practices
The Federal Trade Commission (FTC) filed a lawsuit against Uber back in April 2025, alleging that the company not only enrolled their customers in Uber One without their consent, but made it nearly impossible for them to cancel those subscriptions. Now, 21 states and D.C. have joined the lawsuit.
This recent update marks another legal challenge for Uber. It also raises concerns about how Uber continues to place profits ahead of the needs and expectations of its consumers.
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Lawsuit Filed Against Uber Alleges Deceptive Billing and Cancelallation Practices
In April 2025, the FTC filed a lawsuit against Uber over alleged deceptive billing and cancellation practices. In the lawsuit, the FTC alleges that Uber signed consumers up for Uber One, a monthly subscription service that lets users earn cash back for Uber rides and enjoy fee-free Uber Eats food deliveries.
The FTC alleges that the subscription, which costs $9.99 a month or $96 for the entire year, also wrongly promised consumers savings of $25 per month. Despite Uber promising customers an easy way to cancel their subscription during the free trial period, users were unable to do so, with some actually being charged before the trial period even ended.
According to the lawsuit, users had to navigate as many as 23 screens and take as many as 32 actions just to cancel their Uber One subscription, especially if they were within 48 hours of their billing date. Instead of just allowing users to cancel, Uber would require them to explain their reason for cancellation, urge them to pause their subscription and present them with offers. Allegedly, not only were some users signed up for this service without even having an Uber account, but told to contact customer support in order to cancel. However, in these cases, customers were not given a way to contact support and move forward. Furthermore, some users claim that Uber charged them for another billing cycle after requesting cancellation or waiting to hear back from customer support.
The FTC argues that Uber’s deceptive billing and cancellation practices violate the FTC and the Restore Online Shoppers’ Confidence Act, better known as ROSCA. Enacted in 2010, ROSCA requires online retailers like Uber to clearly disclose the terms of service they are selling, get their consumers’ consent before charging them for a service, and provide a simple, straightforward way to cancel a recurring subscription.
States Join FTC Lawsuit Against Uber
Now, 21 states and the District of Columbia have filed an amended complaint to join the FTC. The amended complaint also alleges ROSCA violations and is seeking civil penalties. The states included in this lawsuit now include:
- Alabama
- Arizona
- California
- Connecticut
- Illinois
- Maryland
- Michigan
- Minnesota
- Missouri
- Montana
- Nebraska
- New Hampshire
- New Jersey
- New York
- North Carolina
- Ohio
- Oklahoma
- Pennsylvania
- Virginia
- West Virginia
- Wisconsin
What This Means Moving Forward
These deceptive billing and cancellation practices signify more than a simple lawsuit; they underscore a troubling pattern of corporate greed and negligence at the highest level. As the founder of UberHurtMe.com, the nation’s leading resource for Uber accident and assault survivors, we’ve seen firsthand how Uber continues to prioritize profits over everything else, including passenger safety. Now, as this lawsuit has exposed, their prioritization of profits is also affecting users’ bank accounts.
Uber has long endured scrutiny over its classification of drivers and faced serious allegations, including lax background checks that have led to serious injury and harm. This lawsuit exposes the loopholes Uber will take to avoid transparency and accountability. According to an Uber spokesperson in response to the amended complaint, Uber says they are disappointed in the FTC’s decision to move forward with a lawsuit, maintaining that their sign up and cancellation process is easy, straightforward and lawful.
Their statement highlights how Uber’s lack of accountability affects their handling of critical issues, not just in this case, but accident liability and compensation to those injured in their care.
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Contact Drazin and Warshaw
On the surface, it may not seem like the FTC lawsuit and the personal injury claims our law firm handles are connected, but they provide a behind-the-scenes look at how Uber operates and how they continue to fail to do the right thing by their consumers.
If you were injured in an Uber accident or harmed in any way, don’t wait to get the help you need. Call Justin Drazin at Drazin and Warshaw at 732-333-8141 or submit our online contact form to schedule your free consultation. You want justice; we’re here to get it for you. We represent clients throughout New Jersey, including Hazlet, Red Bank, Westfield, and Edison.
Disclaimer: This blog is intended for informational purposes only and does not establish an attorney-client relationship. It should not be considered as legal advice. For personalized legal assistance, please consult our team directly.
