Ride-hailing giant Uber is confronting the prospect of multi-billion dollar fines after a coalition of 21 American states and the District of Columbia joined a major federal lawsuit. The legal action, spearheaded by the US Federal Trade Commission (FTC), accuses the company of "deceptive billing and cancellation practices" related to its Uber One subscription programme.
The Core Allegations: Enrolment and a Maze of Cancellation
The FTC initially filed its complaint in April 2025, but the case escalated significantly on Monday, 16 December 2025, when the states formally joined the amended suit. The states involved are Alabama, Arizona, California, Connecticut, Illinois, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Virginia, West Virginia, and Wisconsin, alongside Washington D.C.
Central to the lawsuit are claims that Uber enrolled customers into its Uber One service—a paid membership promising savings on rides and deliveries—without their clear consent. The FTC alleges that users who signed up for free trials were automatically enrolled and charged before the trial period ended, a potential violation of the Restore Online Shoppers’ Confidence Act.
Furthermore, the complaint details an extraordinarily complex cancellation process that starkly contradicts Uber's "cancel anytime" pledge. Regulators state that some users were forced to navigate up to 23 screens and take more than 30 separate actions just to end their subscription. The FTC also contends that the advertised benefits, such as $0 delivery fees and monthly savings of up to $25, often failed to materialise for consumers.
Potential Financial Fallout in the Billions
The addition of state-level penalties has dramatically increased Uber's potential liability. Legal expert David B. Schwartz, a former FTC lead attorney now at Bryan Cave Leighton Paisner LLP, warned of an enormous financial threat. "Uber’s maximum potential monetary liability is enormous, likely in the billions or tens of billions of dollars," Schwartz told The Independent.
He explained that while exact figures are redacted, the numbers from both the FTC and the nearly two dozen participating states could quickly result in "substantial 10- or 11-digit potential recoveries." This legal action represents one of the most significant regulatory challenges Uber has faced regarding its consumer practices.
Uber's Defence and the Road Ahead
In a firm rebuttal, Uber has denied any wrongdoing. The company issued a statement defending its processes: "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 company labelled the joined lawsuit as "misguided" and vowed to "vigorously defend these claims in court." The FTC has stated it only pursues such actions when it has "reason to believe" a company is violating the law and that a proceeding is in the public interest. The case is now set to move forward with the combined weight of federal and state regulators behind it.
