Uber Faces FTC Lawsuit Over Uber One

In a move sending shockwaves through the subscription economy, the Federal Trade Commission (FTC) has filed a lawsuit against Uber over its Uber One premium subscription service, accusing the company of deceptive practices that made canceling the service unnecessarily difficult. The allegations center on dark patterns, misleading math, and cancellation flows that required as many as 32 separate actions across 23 screens—turning a simple opt-out into an infuriating digital obstacle course.

Why the FTC Is Suing Uber

Uber One, the company’s $9.99-per-month subscription program, promised subscribers savings of up to $25 per month. However, the FTC argues this claim is misleading and exaggerated. In reality, most users would need to use all perks perfectly to hit that figure—something few consumers are likely to do. The suit also alleges that some users were charged before their free trial periods ended, undermining trust and possibly violating consumer protection laws.

The most damning allegation, however, concerns Uber's cancellation process. Unlike the frictionless signup flow, which took just a few taps, canceling the service required navigating through a maze of persuasive messages, hard-to-find options, and multiple confirmation screens. This tactic, known in UX circles as a "dark pattern," is more than just frustrating—it may be illegal under the Restore Online Shoppers' Confidence Act (ROSCA), which requires that businesses make cancellation as easy as sign-up.

What This Means for Subscription-Based Businesses

The implications of the lawsuit extend far beyond Uber. If your business operates on a subscription model, this case should serve as a cautionary tale. Regulatory agencies are increasingly cracking down on companies using manipulative or overly complex user experiences to boost retention. Here are some key takeaways:

1. Clarity and Simplicity Are Now Legal Requirements: Regulators are no longer tolerating dark patterns or deceptive flows. Your cancellation process should be as simple and direct as your sign-up process.
   
   
   

2. Transparency Beats Trickery: Claims about savings must be accurate, not optimistic marketing spins. If you promise customers they’ll save money, ensure that your math holds up under scrutiny.
   
   
   

3. UX and Compliance Must Work Together: Marketers, product teams, and legal teams need to align. Growth tactics that rely on friction or confusion to maintain subscribers can now lead to legal action, not just customer complaints.
   
   
   

4. No Company Is Too Big to Be Scrutinized: Uber is a global tech giant with powerful connections and a massive user base—yet the FTC still acted. Political influence and brand strength won't shield companies from accountability.
   
   
   

What’s Next for Uber and the Industry

Uber One has seen rapid growth, with over 30 million subscribers and a 60% increase in adoption in the last year alone. That success, however, could be at risk. If Uber is found to have violated federal law, it could face significant penalties, and other companies using similar tactics may soon come under investigation.

For marketers and product designers, this lawsuit is a reminder to build systems around user trust—not user confusion. The so-called “grandma test” is a simple benchmark: if your grandmother would struggle to cancel your service, your flow is too complicated. Fix it before regulators make you.

Ultimately, the best subscription retention strategy isn’t hiding the exit—it’s delivering value customers don’t want to lose. As the Uber lawsuit plays out, every subscription-based business should be reviewing its own practices. Because in this new regulatory climate, customer trust isn’t just good marketing—it’s compliance.