Montana Attorney General Austin Knudsen on Monday filed a lawsuit against Uber, alleging the ridesharing and delivery company engaged in unfair and deceptive practices tied to its Uber One subscription service.
The lawsuit, filed in coordination with the Federal Trade Commission, 22 states and the District of Columbia, raises concerns about Uber’s enrollment, billing and cancellation practices for Uber One, a subscription the company promotes as a way for customers to save money on rides and deliveries. The complaint alleges the practices violate Montana’s Unfair Trade Practices and Consumer Protection Act as well as the federal Restore Online Shoppers’ Confidence Act.
“The hoops Uber is requiring Montanans to jump through to cancel their subscriptions are outrageous,” Knudsen said in a statement. “Uber’s various attempts to also mislead customers on its free trial subscriptions and the amount of money consumers can save appear to be a violation of state and federal law. As attorney general, I will continue to do what I can to hold businesses accountable for their shady business practices and protect your hard-earned money.”
According to the lawsuit, Uber made canceling an Uber One subscription unusually burdensome once a customer enrolled. The complaint states that canceling generally requires navigating through seven screens and completing 12 separate actions. For customers attempting to cancel within 48 hours of their subscription ending, the process allegedly becomes even more complex, requiring navigation through as many as 23 screens and up to 32 actions.
The lawsuit also alleges Uber used improper “negative option” marketing tactics when offering free trials of Uber One, a practice that automatically charges consumers if they fail to cancel before the trial period ends. Regulators further claim Uber misled consumers about the amount of money they could save through the subscription and charged some users before their stated billing date, including customers whose free trial period had not yet expired.
The case was filed in the U.S. District Court for the Northern District of California. The lawsuit seeks restitution for consumers, civil penalties, costs, and an injunction barring Uber from continuing the alleged practices. A trial is currently scheduled for February 2027.
In addition to Montana, the states joining the lawsuit are Alabama, Arizona, Colorado, Connecticut, Illinois, Maryland, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Texas, Virginia, West Virginia and Wisconsin. The District of Columbia and the Alameda County District Attorney’s Office also joined the action.