The Biden administration has also prioritized addressing deceptive business practices, aiming to ensure that cancellation processes are as straightforward as subscription sign-ups.

The Federal Trade Commission (FTC) has filed a lawsuit against Uber, alleging that the company charged customers for its Uber One subscription without their consent and made the cancellation process unnecessarily complicated.

Uber has expressed disappointment over the lawsuit, asserting that its sign-up and cancellation processes are clear and lawful, and claiming that cancellations can now be completed within the app in about 20 seconds.

FTC Chairman Andrew Ferguson emphasized that the lawsuit serves as a protective measure for consumers, highlighting the need for transparency in the marketplace.

This lawsuit is part of a broader initiative by the Trump-Vance FTC to address issues related to Big Tech, following previous actions against companies like Meta, Google, and Amazon.

Some users have indicated that they were forced to provide reasons for cancellation or were encouraged to pause their subscriptions instead of being allowed to cancel easily.

Uber One, which launched in 2021, costs $9.99 monthly or $96 annually, offering benefits such as fee-free delivery and discounts on rides and deliveries.

Customers have reported frustrations with the cancellation process, including being prompted to contact customer support without clear contact information and facing additional charges after attempting to cancel.

The legal action aligns with the FTC's recent efforts to enforce easier subscription cancellations, particularly following the introduction of a 'click to cancel' rule that takes effect on May 14, 2025.

The lawsuit, filed in the U.S. District Court for the Northern District of California, claims violations of the FTC Act and the Restore Online Shoppers’ Confidence Act.

This lawsuit marks the first significant action taken by the FTC against a major tech company under the Trump administration, reflecting ongoing scrutiny of tech firms and their business practices.

This is not the first time the FTC has acted against Uber; the company previously settled with the agency in 2017 for misleading prospective drivers and agreed to undergo regular audits regarding privacy issues.