NYS joins lawsuit claiming Uber put up barriers to canceling subscriptions

Uber violated state and federal laws by forcing customers to wade through a series of screens and actions in the hopes of canceling a deceptive subscription service, according to a federal lawsuit.

New York State Attorney General Letitia James joined an amended complaint Monday against Uber Technologies LLC and Uber USA LLC for “trapping” customers in recurring subscriptions that are “exceedingly difficult to cancel,” according to a news release from her office. The lawsuit seeks a “permanent injunction” on the conduct, which allegedly violates the federal Restore Online Shoppers’ Confidence Act, as well as restitution for customers and other penalties.

The San Francisco-based tech company marketed its subscription service, Uber One, as a way to cut ride and food delivery costs with the false claim that customers will “save $25 every month,” according to the attorney general’s release. But this message “does not account for the monthly fees that users have to pay to maintain their Uber One subscriptions,” the release said.

While some customers signed up for the service hoping to save, others “complained that they have been enrolled in an Uber One subscription without their consent, reporting that they never signed up and have no idea why they were charged,” according to the complaint.

After they were enrolled in Uber One, users were charged either $9.99 monthly or $96 annually.

To “deter and prevent customers from stopping these recurring charges,” Uber manufactured “a series of obstacles” within the application, the complaint said. To cancel subscriptions, customers must “take at least 12 different actions and navigate a maze of at least 7 screens if they guess the right paths to use, despite there being no mention of cancellation until the fourth screen,” according to the complaint.

The lawsuit also alleges that Uber billed consumers who signed up for free trials before the end of the trial period “and before they were able to try to cancel their subscriptions,” according to James’ release.

The majority of Uber One subscription cancellations, which “can be done anytime in-app,” can be completed in “20 seconds or less,” according to a statement an Uber spokesperson emailed to Newsday on Monday evening.

“Millions of Americans choose Uber One because it delivers real, measurable value: substantial savings on rides and deliveries, priority service, and exclusive promotions,” the statement continued. “If this lawsuit were to succeed, it would upend how virtually every modern subscription service operates. Uber One’s sign-up and cancellation processes are clear, simple, and follow the letter and spirit of the law.”

James said in a statement Monday: “Unwanted subscriptions that are seemingly impossible to cancel are driving up costs for everyday New Yorkers. Companies should not be able to profit by tricking consumers into recurring charges that can require hours of difficult work to stop.”

The Federal Trade Commission filed the initial lawsuit against Uber in April, according to a news release the agency issued Monday. The amended filing lists James alongside the attorneys general of 18 other states and those from the District of Columbia and Alameda County, California.