Nebraska Joins Lawsuit Alleging uber Deceptive Practices with Uber One Subscriptions
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Nebraska Attorney general Mike Hilgers has joined a coalition of states in a lawsuit against Uber Technologies,LLC and Uber USA,LLC,alleging deceptive and unfair practices related to its Uber One subscription service. The lawsuit, originally filed by the Federal Trade Commission (FTC), is currently pending in the U.S. District Court for the Northern District of California, with a trial scheduled for february 2027.
Allegations Against Uber
The lawsuit centers around claims that Uber misled consumers regarding the benefits and cancellation policies of its Uber One subscription,which is marketed as a way to save money on rides and deliveries. Specific allegations include:
* Negative Option Marketing: Uber allegedly utilized negative option marketing tactics by offering free trials that automatically converted into paid subscriptions if not explicitly cancelled. https://www.ftc.gov/news-events/news/press-releases/2024/03/ftc-sues-uber-hidden-fees-cancelation-difficulties
* Misleading Savings Claims: The lawsuit claims Uber misrepresented the amount of money consumers could save by subscribing to Uber one.
* Tough Cancellation Process: Uber allegedly made it excessively difficult for subscribers to cancel their Uber one memberships.
* Premature Billing: Consumers were reportedly charged subscription fees before their billing date, even during active free trial periods.
State Coalition and Legal Action
The lawsuit, led by Maryland attorney General Anthony G. Brown, includes attorneys general from a broad coalition of states: Alabama, Arizona, Connecticut, the District of columbia, Illinois, Michigan, Minnesota, Missouri, montana, New Hampshire, New Jersey, New York, North Carolina, Ohio, oklahoma, pennsylvania, Virginia, West Virginia, and Wisconsin. The District Attorney for alameda County, California is also participating. https://www.marylandattorneygeneral.gov/press/2024/030724-uber-one-lawsuit.pdf
The Attorney General’s lawsuit seeks restitution for affected consumers, as well as civil penalties, costs associated with the litigation, and a court injunction to prevent Uber from continuing the alleged violations of Nebraska’s Consumer Protection Act and the U.S. Restore online Shoppers’ Confidence Act (ROSCA).
Understanding ROSCA
The Restore Online shoppers’ Confidence Act (ROSCA) is a U.S. law enacted in 2010 designed to combat deceptive online subscription practices. It requires clear and conspicuous disclosure of all terms and conditions, and provides consumers with a simple and effective way to cancel recurring charges. https://www.ftc.gov/business-guidance/resources/restore-online-shoppers-confidence-act
Uber’s Response
As of December 16, 2024, Uber has not issued a comprehensive public statement directly addressing all allegations in the lawsuit. However, an Uber spokesperson stated in March 2024 that “uber is committed to providing consumers with clear and obvious information about their options.” https://www.reuters.com/legal/us-ftc-sues-uber-over-hidden-fees-difficult-cancellations-2024-03-06/
Looking Ahead
This lawsuit highlights the growing scrutiny of subscription-based services and the importance of protecting consumers from deceptive practices. The outcome of the trial could have significant implications for Uber’s business model and the broader rideshare and delivery industry. Consumers who believe they were unfairly charged by Uber One are encouraged to follow updates on the case and potentially file complaints with their state’s Attorney General office or the FTC.
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