Dec 15 (Reuters) - The U.S. Federal Trade Commission said on Monday that the agency and 21 states, along with the District of Columbia, have filed an amended complaint against ride-hailing app Uber, alleging it engaged in deceptive billing and cancellation practices.
The updated lawsuit, filed in the U.S. District Court for the Northern District of California, claims that Uber charged consumers for subscriptions without consent, failed to deliver promised benefits such as zero-dollar delivery fees
and monthly savings, and made it difficult for users to cancel.
Shares of Uber fell more than 3% following the news.
The FTC first sued Uber in April over similar allegations. The amended complaint seeks civil penalties for alleged violations of the Restore Online Shoppers' Confidence Act and state consumer protection laws.
Uber One, marketed as a monthly or annual subscription, promises perks including $0 delivery fees and up to $25 in monthly savings. But the FTC said many consumers reported paying delivery fees despite the promise and not receiving the advertised savings.
The complaint also alleges that Uber enrolled users in the subscription without their knowledge, including those who signed up for free trials, and then charged them before the trial ended.
Uber denied the allegations and said it does not sign up or charge consumers without their consent.
Cancellation was also described as "exceedingly difficult," with users forced to navigate up to 23 screens and take as many as 32 actions to cancel, according to the filing.
"The majority of cancellations take 20 seconds or less and can be done in the app anytime," Uber said in emailed statement, adding that "Prior to December 2024, as explained during sign up, consumers within 48 hours of their next billing period had to contact Support in order to cancel."
States joining the FTC include California, New York, Texas and Illinois.
(Reporting by Kritika Lamba in Bangalore, Costas Pitas in Los Angeles and Ryan Patrick Jones in Toronto; Editing by Chris Reese and Shinjini Ganguli)
