The US Federal Trade Commission (FTC) has sued Uber, accusing the company of misleading advertising and intentionally degrading its regular service to promote its $9.99 per month Uber One subscription, The New Your Times reports.
The FTC alleges that Uber signed up users for the service without their knowledge and then billed them. The company is also accused of exaggerating the benefits of the subscription and intentionally making it difficult to cancel — customers had to go through 23 screens and complete 32 steps to cancel.
The lawsuit against Uber is part of a broader U.S. government crackdown on tech giants. The Justice Department has also filed a lawsuit demanding that Google sell its Chrome browser and accusing Meta of monopolistic practices by taking over competitors.
FTC Chairman Andrew Ferguson called the lawsuit an example of how "The Trump-Vance F.T.C. is fighting back on behalf of the American people."
Uber denies the allegations, saying its subscription and cancellation process is "Uber One’s sign-up and cancellation processes are clear, simple and follow the letter and spirit of the law." Company spokesman Noah Edwardsen called the FTC’s lawsuit "baseless."
Interestingly, Uber and its CEO Dara Khosrowshahi previously donated $1 million each to Trump's inaugural fund. Meta, Amazon, and Apple CEO Tim Cook donated similar amounts.
According to the company's latest financial report, more than 30 million people have signed up for Uber One, a 60% increase from last year. Users receive ride rewards, free food delivery, and special fares on select routes.