The Federal Trade Commission (FTC) has filed a lawsuit against Uber, alleging that the ride-hailing giant has been using deceptive billing and cancellation practices for its Uber One subscription service. According to the lawsuit, Uber has been enrolling customers in the service without their consent and making it difficult for them to cancel, resulting in unwanted charges.

The FTC claims that Uber used difficult-to-read text and deceptive savings promises to lure customers into its subscription service. When signing up for Uber, customers are promised savings of $25 a month, but this does not account for the $9.99 monthly cost of the subscription. The company also allegedly obscured material information about the subscription, including using small, greyed-out text that consumers can easily miss.

Many customers have reported being enrolled in the service without their consent, with one customer claiming they were charged despite not even having an Uber account. After sign-up, Uber allegedly charged customers before their billing date, and occasionally before the free trial period ended. When customers tried to cancel, Uber made it "extremely difficult," according to the FTC.

Some customers were told they had to contact customer support to cancel, but were given no way to do so. Others claimed that Uber charged them for another billing cycle after they requested cancellation and were waiting to hear back from customer support. The FTC is seeking a permanent injunction to block Uber from continuing to enroll people in its subscription program, as well as unspecified monetary relief for victims of the alleged policy.

Uber has denied the allegations, stating that customers are able to cancel subscriptions with little friction. The company claims that cancellations can now be done in-app and take most people 20 seconds or less. Uber has also provided statements from former FTC officials echoing similar sentiments, including Tim Muris, former FTC Chair, who expressed disappointment that the FTC chose to bring the case without a full investigation.

The lawsuit highlights the ongoing concerns about deceptive business practices in the tech industry. "Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel," said FTC Chairman Andrew Ferguson. "The Trump-Vance FTC is fighting back on behalf of the American people."

The implications of this lawsuit are significant, not only for Uber but also for the broader tech industry. As consumers become increasingly wary of deceptive business practices, companies will need to prioritize transparency and accountability in their subscription services. The outcome of this lawsuit will likely set a precedent for how companies can and cannot operate their subscription services, and will likely have a ripple effect throughout the industry.

As the tech industry continues to evolve, it's clear that regulators will be keeping a close eye on companies like Uber. With the rise of subscription-based services, it's more important than ever for companies to prioritize consumer protection and transparency. The Uber FTC lawsuit serves as a reminder that companies must be held accountable for their actions, and that consumers deserve to be treated fairly and honestly.