The Federal Trade Commission (FTC) has sued Uber over allegations that the company’s subscription marketing practices violate the click-to-cancel rule, which was finalized last October. The rule requires companies to make it easy for customers to cancel their subscriptions without facing additional fees or penalties.
According to the lawsuit, Uber makes it difficult for customers to cancel their subscriptions by requiring them to navigate through multiple steps on the app, including finding a “help” screen, leaving a message for support, and waiting for a response. The FTC alleges that this process is burdensome and violates the click-to-cancel rule.
The case was brought by two Republican commissioners who previously supported the click-to-cancel rule but were later fired. One of the remaining Democratic commissioners, Alvaro Bedoya, had also supported the rule but has since recused himself from the case due to personal ties.
The lawsuit does not mention the click-to-cancel rule directly, but instead claims that Uber’s actions violate the FTC’s broader prohibition on unfair and deceptive acts and practices. The agency is using this provision because one of its commissioners, Mark Meador, had previously recused himself from the case due to potential conflicts of interest.
This lawsuit highlights concerns about the effectiveness of existing enforcement options under the click-to-cancel rule. Critics argue that a stronger public response to the rule would encourage companies to comply with its requirements.
The FTC did not respond to a request for comment on this story.
Source: https://prospect.org/justice/2025-04-22-ftc-republicans-sue-uber-for-actions-in-rule-they-rejected