Federal Judge Upholds FTC Claims Against Uber's Deceptive Subscription Practices

Published
Score
11

Why it matters

On April 10, 2026, U.S. District Judge Jon S. Tigar ruled that the Federal Trade Commission's lawsuit against Uber Technologies can proceed, rejecting Uber's motion to dismiss. The FTC, joined by 21 state attorneys general, alleges that Uber violated the Restore Online Shoppers' Confidence Act and the FTC Act by charging consumers for Uber One subscriptions without clear consent, failing to provide a simple cancellation mechanism despite promising "cancel anytime," and misrepresenting promised savings. The core problem: Uber enrolled users who had already saved payment information for ride-hailing into subscriptions without adequately disclosing material terms before charging their stored payment methods.

Judge Tigar found the FTC's allegations plausible on the central claims. The judge dismissed only one subclaim challenging Uber's "$0 delivery fee" representation, finding it expressly limited to eligible orders. The ruling does not address the merits of the remaining claims, which will proceed through discovery and trial.

Attorneys should watch this case closely because it clarifies how ROSCA applies to subscription enrollment tied to stored payment credentials. The decision signals that companies cannot rely on pre-stored payment information to streamline enrollment; they must obtain fresh affirmative consent after presenting required disclosures. This ruling reinforces that convenience features cannot override statutory disclosure requirements and reflects a broader FTC enforcement push against deceptive subscription practices. The implications extend beyond Uber to any business using stored payment methods for subscription enrollment.

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