The Federal Trade Commission on Monday sued Uber (NYSE:UBER), accusing the ride-hailing and delivery company of deceptive billing and cancellation practices tied to its subscription service.
The agency claims Uber violated the FTC Act and the Restore Online Shoppers’ Confidence Act by providing misleading information about its Uber One subscription service, failing to provide a simple way for users to cancel their membership, and charging them without their consent.
“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” FTC Chair Andrew Ferguson said in a statement. “The Trump-Vance FTC is fighting back on behalf of the American people.”
The complaint marks the first FTC action against a major tech company since President Donald Trump began his second term in January. The FTC has several ongoing lawsuits against tech’s megacap companies, including Meta (NASDAQ:META), Google (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN). Some cases were brought during President Joe Biden’s presidency, but Trump’s FTC was aggressive during his first term, most notably going after Meta.
Uber and CEO Dara Khosrowshahi each reportedly donated $1 million to President Trump’s inaugural fund, joining a lengthy roster of tech companies and executives attempting to cozy up to the incoming administration.
Noah Edwardsen, an Uber spokesperson, said in an email that the company is “disappointed” by the FTC’s complaint, but that it’s confident the courts will rule in its favor.
UBER shares picked up $1.80, or 2.5%, to $74.72.