Montana Attorney General Austin Knudsen on filed a lawsuit against Uber, alleging the ridesharing and delivery company engaged in unfair and deceptive practices related to its Uber One subscription service.
The lawsuit was filed in partnership with the Federal Trade Commission, 22 states, and the District of Columbia. It raises concerns about Uber’s enrollment, billing and cancellation practices for Uber One, a subscription the company promotes as a way for users to save money on rides and food deliveries.
According to the complaint, Uber’s practices may 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.”
The lawsuit alleges Uber made it extraordinarily difficult for consumers to cancel Uber One once enrolled. To cancel a subscription, users must navigate through seven different screens and complete 12 separate actions. If a consumer attempts to cancel within 48 hours of the subscription renewing, the process becomes even more complex, requiring navigation through 23 screens and as many as 32 actions.
Attorneys general also allege Uber improperly used “negative option” marketing tactics when offering free trial subscriptions — a practice that automatically charges consumers if they do not cancel before the trial period ends. The complaint further claims Uber misled consumers about the amount of money they could save by subscribing to Uber One and charged some users before their stated billing date, including customers whose free trials had not yet expired.
The lawsuit was filed in the U.S. District Court for the Northern District of California. It seeks restitution for consumers, civil penalties, costs, and an injunction to stop the alleged practices. A trial is currently scheduled for February 2027.
In addition to Montana, the states joining the lawsuit include 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, along with the District of Columbia and the District Attorney for Alameda County, California.