US watchdog sues Uber over subscription practices

BBC - Apr 22nd, 2025

The US Federal Trade Commission (FTC) has filed a lawsuit against Uber, accusing the company of deceptive billing and cancellation practices related to its Uber One subscription service. The FTC alleges that Uber charged customers without their consent and made it difficult for them to cancel subscriptions, requiring up to 32 actions to complete the process. Uber, however, disputes these claims, stating that cancellations are now straightforward and can be done within seconds in-app. This legal action marks the first major lawsuit filed by the FTC against a US tech company since President Donald Trump's second term began.

The lawsuit against Uber highlights ongoing regulatory scrutiny of tech companies' business practices, especially regarding consumer rights and transparency. Uber's response emphasizes its efforts to streamline subscription management, contrasting with the FTC's depiction of cumbersome cancellation processes. This development is part of a broader pattern of legal challenges faced by tech giants, including ongoing litigation against Meta, concerning its acquisitions of Instagram and WhatsApp. The outcome of these cases could significantly impact regulatory approaches to tech company operations and consumer protection policies in the US.

Trump Administration Consumer Protection Federal Trade Commission Andrew Ferguson Uber Deceptive Billing Uber One Subscription Cancellation Practices Tech Regulations

Story submitted by Fairstory

RATING

8.2

Fair Story

Consider it well-founded

The news story provides a comprehensive and accurate account of the FTC's lawsuit against Uber, focusing on allegations of deceptive billing and cancellation practices. It effectively balances perspectives by including statements from both the FTC and Uber, although additional insights from independent experts could have enhanced the analysis. The article is timely and relevant, addressing significant public interest topics such as consumer rights and corporate accountability. Its clear and concise language ensures readability, while the potential for controversy is handled responsibly, maintaining an objective tone. Overall, the story is well-crafted and informative, with minor areas for improvement in source diversity and transparency.

Accuracy

The news story accurately reports the key facts of the FTC lawsuit against Uber, including the allegations of deceptive billing and cancellation practices related to Uber One. The story correctly identifies the FTC's claims about consumers being charged without consent and the difficulty in canceling subscriptions. These details are corroborated by official FTC filings and Uber's public responses. However, the story could have provided more context on the legal basis for the FTC's actions, such as specific violations of the FTC Act and ROSCA, to enhance its precision.

Balance

The article presents a balanced view by including statements from both the FTC and Uber. It quotes FTC Chairman Andrew Ferguson and provides Uber's response to the allegations, allowing readers to see both sides of the issue. However, the story could have been more balanced by including perspectives from independent legal experts or consumer advocacy groups to provide additional context and analysis of the lawsuit's implications.

Clarity

The article is well-structured and uses clear, concise language to convey the main points of the story. It logically presents the sequence of events, starting with the lawsuit's filing and detailing the allegations and responses. The tone remains neutral, allowing readers to understand the facts without being influenced by biased language. Overall, the article is easy to read and comprehend.

Source quality

The story relies on credible sources, such as official statements from the FTC and Uber. The inclusion of direct quotes from FTC Chairman Andrew Ferguson and Uber spokesperson Ryan Thornton adds to the reliability of the information. However, the story could have been strengthened by referencing third-party sources, such as legal experts or consumer rights organizations, to provide additional insights and verify the claims made by both parties.

Transparency

The article provides a clear account of the lawsuit and the claims made by the FTC and Uber. It discloses the sources of its information, including direct statements from involved parties. However, the story does not delve into potential conflicts of interest or the methodology behind the FTC's investigation, which could have provided a deeper understanding of the basis for the claims and any potential biases.