New Jersey Joins FTC Lawsuit Over Uber One Billing Practices

by Anika Shah - Technology
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The basics:

  • New Jersey joined the FTC and 21 other AGs in a lawsuit against Uber
  • The suit targets alleged deceptive billing tied to Uber one subscriptions
  • Consumers say promised savings were not delivered and cancellations were difficult
  • Uber denies the claims and says it will vigorously defend the lawsuit

New Jersey has joined the U.S. Federal Trade Commission and a coalition of 21 state attorneys general in a lawsuit alleging that ride-hailing and delivery giant Uber engaged in deceptive billing and cancellation practices.

In a lawsuit initially filed last April in the U.S. District Court for the Northern District of California, Uber was accused of improperly charging consumers for its paid Uber One subscription program without consent and failing to deliver promised perks, such as zero-dollar delivery fees and monthly savings. the company also allegedly made it difficult for users to cancel, the complaint says.

The complaint amended Dec. 15 expands the case by adding state-level claims and seeking civil penalties for alleged violations of state and federal consumer protection laws, including the Restore Online shoppers’ Confidence Act.

In addition to New Jersey, attorneys general that have signed on to the updated lawsuit are from Alabama, Arizona, california, Connecticut, Illinois, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Virginia, Washington, D.C., west Virginia and Wisconsin.

Customer frustrations

Marketed as a $9.99 monthly or $96 annual subscription plan, Uber One’s advertised benefits include $0 delivery fees and up to $25 in monthly savings.

According to the lawsuit, many consumers reported paying delivery fees despite the promise and did not see any savings from the service.It also alleges that Uber enrolled users in the program without thier knowledge, including those who signed up for free trials, and then charged them before the period ended.

Cancellation was described as “exceedingly difficult,” with customers forced to navigate up to 23 screens and take as many as 32 actions to cancel, according to the suit. Users then must wait for an Uber customer service representative to respond to their request and process their cancellation,the complaint says.

NJ Attorney General Sues Uber Over Cancellation Practices

Platkin
Platkin

new Jersey Attorney General Matthew Platkin is suing Uber. The lawsuit centers on what he calls deceptive and unfair cancellation practices.Platkin argues Uber makes it intentionally difficult for customers to cancel subscriptions.

“Too frequently enough,companies looking to sell you on the idea of convenience and the prospect to save money are doing so with one hand already in your wallet,” Platkin stated. “Canceling a subscription service should not force you through a byzantine process that requires clicking through two dozen screens or more, only to have to repeat the process.”

Bureau of Securities chief Elizabeth Harris has
Bureau of Securities Chief Elizabeth Harris

The lawsuit alleges Uber violates the New Jersey Consumer Fraud Act. It claims the company’s cancellation process is designed to discourage users and extract further payments. The Attorney General’s office seeks to stop these practices and obtain financial penalties from Uber.

Elizabeth Harris, Chief of the Bureau of Securities, is handling the case. The state is seeking restitution for affected consumers. Uber has not yet publicly responded to the lawsuit.

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