21 States Join Lawsuit Against Uber Over Subscription Practices

Nearly two dozen states and the District of Columbia have joined the Federal Trade Commission (FTC) in a major lawsuit against Uber. The complaint alleges that Uber charged customers for its Uber One subscription without proper consent, billed users before free trials ended, and provided misleading claims about potential savings. Reports indicate that canceling the subscription required navigating up to 23 screens and completing 32 steps, frustrating many customers.

States Targeting Uber Include Major Markets

The lawsuit now includes Alabama, Arizona, California, Connecticut, Illinois, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Virginia, West Virginia, and Wisconsin. Officials say the amended complaint seeks civil penalties for violations of the Restore Online Shoppers’ Confidence Act and various state laws, highlighting the widespread nature of the alleged consumer harm.

Allegations Focus on Hidden Charges and Complex Cancellations

According to the lawsuit, Uber allegedly billed customers without explicit permission, often before free trials expired. The complaint emphasizes the difficulty of canceling Uber One subscriptions, describing a process so cumbersome that some users reportedly gave up entirely. The states argue that these practices violate consumer protection laws and undermine shopper confidence across the country.

Uber Denies Wrongdoing, Promises Simpler Cancellations

Uber has consistently denied the FTC’s claims, stating that subscription cancellations are now straightforward. A company spokesperson told The Verge, “Cancellations can now be done anytime in-app and take most people 20 seconds or less.” Despite these assurances, regulators maintain that past practices caused significant consumer harm and merit accountability.

FTC and States Seek Civil Penalties

The amended lawsuit specifically requests civil penalties under both federal and state law. Legal experts say the case could set a precedent for how subscription services manage billing transparency and cancellation procedures. If successful, it could influence practices not only for Uber but across the broader ride-sharing and subscription-based services industry.

Consumer Impact Highlights Subscription Risks

For Uber customers, this lawsuit underscores the risks of auto-renewing subscriptions. Misleading offers and difficult cancellation processes are increasingly common in tech services, and regulators are signaling that such practices will face scrutiny. Consumer advocates stress the importance of reading terms carefully and monitoring accounts for unauthorized charges.

Broader Implications for Tech and Subscription Services

The Uber case is part of a growing trend of multi-state actions targeting tech companies for consumer protection violations. Analysts suggest that the outcome could push platforms to simplify subscription management and improve transparency. For consumers, this could lead to a more straightforward digital experience and stronger safeguards against hidden fees.

What Comes Next in the Legal Battle

The lawsuit is now moving through federal courts, with each participating state supporting the FTC’s claims. Legal observers expect Uber to continue challenging the allegations while states push for accountability. The case could take months or even years to resolve, potentially reshaping how subscription services operate in the U.S.