Background on the Case
The U.S. Federal Trade Commission (FTC) filed a lawsuit against Uber Technologies on Monday, accusing the company of enrolling some Uber One subscribers without their knowledge and making misleading claims about the service.
What is Uber One?
Uber One is a monthly subscription service priced at $9.99, offering discounts on fees associated with Uber’s ride-hailing and food delivery apps.
FTC’s Allegations
Unauthorized Enrollments
According to the FTC, Uber signed up certain users for Uber One without their consent. This practice is a violation of the Telemarketing Sales Rule, which aims to protect consumers from deceptive telemarketing sales.
Misleading Claims
The FTC also claims that Uber misled users about the savings they could achieve with Uber One. Specifically, the company allegedly falsely stated that users would save around $25 per month through the service. Additionally, Uber allegedly misrepresented the ease of canceling subscriptions.
FTC Chair’s Statement
FTC Chairman Andrew Ferguson commented on the lawsuit, saying, “Americans are tired of being signed up for unwanted subscriptions that seem impossible to cancel. The Trump-Vance FTC is taking action on behalf of the American people.”
Key Questions and Answers
- Q: Who is the U.S. Federal Trade Commission (FTC)? A: The FTC is an independent agency of the U.S. government that protects consumers and promotes competition by preventing anticompetitive, deceptive, and unfair business practices.
- Q: What is Uber Technologies? A: Uber Technologies is a multinational ride-hailing company offering services such as rideshare, food delivery, and freight transportation.
- Q: What is Uber One? A: Uber One is a subscription service that provides discounts on fees associated with Uber’s ride-hailing and food delivery apps for a monthly fee of $9.99.
- Q: What are the FTC’s allegations against Uber? A: The FTC accuses Uber of enrolling some users in Uber One without their consent and making misleading claims about the savings and ease of canceling subscriptions.
- Q: What is the Telemarketing Sales Rule? A: The Telemarketing Sales Rule is a regulation established by the FTC to protect consumers from deceptive and abusive telemarketing practices.
