Uber Technologies Inc (NYSE:UBER) shares dropped on Monday as regulators ramped up scrutiny of the company's subscription practices.
Uber Technologies shares are retreating from recent levels. What’s weighing on UBER shares?
What Happened: The Federal Trade Commission (FTC), joined by 21 states and Washington, D.C., filed an amended complaint accusing Uber of enrolling customers in its Uber One subscription without consent, failing to deliver promised perks like $0 delivery fees and making cancellation unnecessarily difficult.
The FTC first sued Uber in April over alleged deceptive billing tied to Uber One. The expanded complaint now seeks civil penalties under the Restore Online Shoppers' Confidence Act and state consumer protection laws.
According to regulators, Uber markets Uber One as offering monthly savings of up to $25 and free delivery. Yet many users say they were still charged fees or never saw the advertised discounts.
Many customers claim Uber signed them up for its subscription without their consent. Some say free‑trial users were automatically rolled into paid plans and billed before the trial expired, while others report being charged for Uber One despite never intentionally enrolling.
The complaint alleges that canceling Uber One can require navigating 23 screens and up to 32 separate actions, despite Uber's promise that customers can "cancel anytime."
UBER Price Action: Uber shares were down 4.34% at $81.42 at the time of publication on Monday, according to Benzinga Pro.
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