Michigan Attorney General Dana Nessel has joined a coalition of 22 law enforcement agencies in a federal lawsuit against Uber Technologies, LLC, alleging the rideshare giant trapped consumers in deceptive subscription cycles.
The lawsuit, originally filed by the Federal Trade Commission, targets the company’s Uber One service. While Uber markets the subscription as a way for users to save money on rides and food deliveries, prosecutors argue the program relies on “dark patterns” and unfair billing practices to pad the company’s bottom line.
“When a consumer signs up for a subscription service, they expect to get the savings that are advertised and to be able to try it out without being unlawfully charged,” Nessel said in a statement Thursday. “They shouldn’t have to jump through hoops just to cancel a service they no longer want.”
Uber did not immediately respond to a request for comment.
The complaint, filed in the U.S. District Court for the Northern District of California, alleges several violations of consumer trust:
- Uber allegedly used “negative option marketing,” a practice where customers are automatically charged when a free trial ends without explicit secondary consent.
- The suit claims Uber exaggerated how much money subscribers would save by joining Uber One.
- Prosecutors allege Uber charged some customers before their scheduled billing dates, including those still within their trial period.
- The lawsuit calls the process of canceling Uber One as intentionally difficult, designed to frustrate users into maintaining paid memberships.
Nessel is seeking restitution for Michigan residents, along with civil penalties and a permanent injunction, alleging violations of the Michigan Consumer Protection Act and the federal Restore Online Shoppers’ Confidence Act.
Michigan is joined in the coalition by 19 other states, including Ohio, Illinois and New York, as well as the District of Columbia and local prosecutors in California.
A trial is not expected to begin until February 2027. In the meantime, Michigan residents who believe they have been unfairly charged by subscription services can file a complaint through the Attorney General’s Consumer Protection Team.
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