Uber Engaged In 'Deceptive' Practices Over Subscription Services, Lawsuit Says

ALAMEDA, CA — Alameda County is suing Uber, accusing the rideshare company of engaging in deceptive and unfair practices.

Alameda County District Attorney Ursula Jones Dickson announced on Wednesday that her agency had joined in on a lawsuit filed by the Federal Trade Commission on Monday. Agencies in 21 other states and the District of Columbia have also joined in on the lawsuit, according to the FTC.

“Consumers deserve honesty and transparency in the marketplace,” Jones Dickson said in a statement on Wednesday. “We take these allegations seriously and will continue to work with our law enforcement partners to protect consumers from misleading and unlawful conduct.”

In a statement to Patch, Uber rejected the accusations, saying the lawsuit was "misguided," "wrong," and that the company would "vigorously defend these claims in court."

“Millions of Americans choose Uber One because it delivers real, measurable value: substantial savings on rides and deliveries, priority service, and exclusive promotions," an Uber spokesperson told Patch. "If this lawsuit were to succeed, it would upend how virtually every modern subscription service operates."

The lawsuit accuses Uber of charging consumers for subscriptions without consent, failing to deliver promises of savings, including zero-dollar delivery fees and making it difficult for users to cancel their subscriptions.

Many customers claimed Uber charged them for a subscription before their trial ended, according to the FTC. Others were signed up to an Uber One subscription without their consent, the agency added.

When consumers tried to cancel, they were forced to navigate nearly two dozen screens, according to the FTC.

"Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the lawm" an Uber spokesperson said. "Uber does not sign up or charge consumers without their consent, and cancellations can be done anytime in-app and take most people 20 seconds or less."

Through the lawsuit, the FTC and other agencies are seeking civil penalties, a permanent injunction to prevent future violations and restitution.