New Jersey joins FTC lawsuit over Uber One billing practices

Listen to this article

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 their 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.

“But even consumers who have found their way to the cancellation support queue have often been unable to promptly cancel or avoid being charged due to excessively long hold times: consumers often report waiting hours or up to a full day to receive a response from Uber, and that they were already billed for the next payment in the interim,” officials claim.

Uber responds

A spokesperson for San Francisco-based Uber shared with NJBIZ: “Millions of Americans choose Uber One because it delivers real, measurable value: substantial savings on rides and deliveries, priority service, and exclusive promotions. 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. Uber does not sign up or charge consumers without their consent, and cancellations can be done anytime in-app and take most people 20 seconds or less.

“The FTC, and the states that have decided to join this misguided lawsuit, are wrong, and we will vigorously defend these claims in court,” the spokesperson added.

‘Byzantine process’

In a statement, New Jersey Attorney General Matthew Platkin said, “Too often, companies looking to sell you on the idea of convenience and the opportunity to save money are doing so with one hand already in your wallet. 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.”

New Jersey Division of Consumer Affairs Acting Director Elizabeth Harris added, “This lawsuit describes, in painstaking detail, how people felt trapped and scammed by this service, and how it was almost impossible to leave. New Jersey has among the strongest consumer protection laws in the nation, and those laws protect against the types of corporate behavior laid out here.”