The Federal Trade Commission (FTC) in Nigeria has filed a lawsuit against Uber, alleging the company engaged in deceptive practices tied to its Uber One subscription service. The FTC claims Uber enrolled users without proper consent, misrepresented promised savings, and designed an intentionally difficult cancellation process. Uber One, priced at $9.99 per month, was advertised as providing significant discounts on rides and deliveries, yet the FTC argues these savings were overstated and did not factor in the subscription cost.
According to the complaint, Uber obscured critical details of the subscription in hard-to-read formats and charged users during free trial periods before their billing dates. The FTC further claims that canceling the service was overly burdensome, requiring users to navigate up to 23 screens and perform as many as 32 actions. Some customers were even instructed to contact support for cancellations, only to face delays and unexplained charges during the wait period.
FTC Chairman Andrew Ferguson stated that the lawsuit is part of a broader crackdown on difficult-to-cancel subscription services, which he said have become a widespread consumer frustration. Uber, however, denied the allegations, asserting that customers are never charged without consent and that the in-app cancellation process now takes as little as 20 seconds. The company also criticized the FTC for allegedly acting on incomplete information and rushing the legal process.
Despite Uber’s defense, the FTC is pushing for an end to the company’s alleged deceptive practices and is seeking monetary compensation for affected customers. Uber One continues to grow rapidly, boasting 30 million members across 34 countries and projected to generate over $1 billion in membership fees in 2024. This latest lawsuit adds to Uber’s history of regulatory challenges, including past settlements over misleading privacy and driver earnings claims, highlighting ongoing concerns about the company’s transparency and customer treatment.