Maryland joins lawsuit alleging ‘deceptive’ Uber One practices

Maryland Attorney General Anthony Brown joined nearly two dozen state, federal and local agencies—adding to an FTC complaint filed in April—in suing Uber over alleged deceptive enrollment, billing and cancellation practices tied to its Uber One subscription, seeking restitution for customers; the service offers $9.99 monthly or $96 annual plans and free trials that prosecutors say have led to unwanted charges. The suits allege auto-enrollment and onerous cancellation mechanics during free trials, while Uber countered that consumers consented, cancellation options are visible at sign-up and the process was simplified after December 2024 to take about 20 seconds, with refunds available for close-to-billing cancellations. Uber said it will vigorously defend the case, warning that a plaintiff victory could upend common subscription practices across the industry.

Analysis

Maryland Attorney General Anthony Brown has joined nearly two dozen state, federal and local agencies in suing Uber over alleged deceptive enrollment, billing and cancellation practices tied to its Uber One subscription, adding to a Federal Trade Commission complaint filed in April and seeking restitution for affected customers. The complaint centers on first-time free trials that prosecutors say led to unwanted charges and on allegedly onerous cancellation mechanics; Uber One is priced at $9.99 per month or $96 per year with a free-trial offer. Uber disputes the allegations, saying consumers consented, cancellation options are visible at sign-up, refunds are available for close-to-billing cancellations and the company simplified cancellation after December 2024 from a two-day call requirement to a roughly 20-second process. The coordinated multi-state action and the company’s warning that a plaintiff victory could “upend how virtually every modern subscription service operates” create regulatory and reputational risk; sentiment is moderately negative (score -0.4) and the market-impact score (0.45) signals a modest but material near-term risk to UBER’s sentiment and potential liabilities.

Key Decisions for Investors

• Monitor litigation milestones, FTC filings and any announced remediation or settlement terms closely and avoid initiating large new net-long positions in UBER until legal exposure is clearer
• Consider reducing position size or hedging near-term downside risk in UBER via options if exposure is material, given potential restitution, increased compliance costs and reputational impact
• Track operational KPIs referenced by the case—subscription churn, refund volumes and disclosed cancellation-flow changes—as leading indicators of revenue and margin impact
• If holding, set clear risk thresholds tied to regulatory rulings or settlement disclosures and be prepared to reallocate to less litigation-sensitive names if adverse outcomes materialize