The U.S. Federal Trade Commission filed a lawsuit against Uber on Monday, alleging that it enrolled consumers in its Uber One subscription program without their consent and made it too difficult for them to cancel the service.
Uber One members pay $9.99 per month or $96 per year for a range of services, including fee-free Uber Eats food deliveries and cash back when they take Uber rides.
In its lawsuit, the FTC said multiple customers complained that Uber signed them up for Uber One without their permission or charged them for the service before a free trial period was over. In at least one case, a person was charged $9.99 per month even though they didn’t have an Uber account, the lawsuit said.
The FTC said Uber also made it extremely difficult for subscribers to cancel Uber One. The agency said Uber requires customers to take at least 12 different actions on at least seven screens to cancel the service. Cancellation gets even harder for consumers within 48 hours of their billing date, the FTC said, requiring them to navigate as many as 23 screens and still contact customer service.
“Americans are tired of getting signed up for unwanted subscriptions that seem impossible to cancel,” said FTC Chairman Andrew N. Ferguson, who has led the FTC since January after he was tapped as chairman by President Donald Trump.
In a statement, Uber said it was disappointed that the FTC chose to move forward with the lawsuit. Uber said its sign-up and cancellation process is clear, simple and lawful.
“Uber does not sign up or charge consumers without their consent and cancellations can now be done anytime in-app and take most people 20 seconds or less,” Uber said.
Uber said at one point it did require customers to contact a service representative if they wanted to cancel within 48 hours of a billing period, but that is no longer the case.
FILE - The Uber logo appears above a trading post on the floor of the New York Stock Exchange, Aug. 16, 2019. (AP Photo/Richard Drew, File)
NEW YORK (AP) — Oil prices rose sharply Monday as U.S. and Israeli attacks on Iran and retaliatory strikes against Israel and U.S. military installations around the Gulf sent disruptions through the global energy supply chain.
Traders were betting the supply of oil from Iran and elsewhere in the Middle East would slow or grind to a halt. Attacks throughout the region, including on two vessels traveling through the Strait of Hormuz, the narrow mouth of the Persian Gulf, have restricted countries’ ability to export oil to the rest of the world. Prolonged attacks would likely result in higher prices for crude oil and gasoline, according to energy experts.
West Texas Intermediate, the light, sweet crude oil produced in the United States, was selling for about $72 a barrel early Monday, up around 7.3% from its trading price of about $67 on Friday, according to data from CME group.
A barrel of Brent crude, the international standard, was trading at $78.55 per barrel early Monday, according to FactSet, up 7.8% from its trading price of $72.87 on Friday, which had been a seven-month high at the time.
Higher global energy prices could lead to consumers paying more for gasoline at the pump and shelling out more for groceries and other goods, at a time when many are already feeling the impacts of elevated inflation.
Roughly 15 million barrels of crude oil per day — about 20% of the world’s oil — are shipped through the Strait of Hormuz, making it the world’s most critical oil chokepoint, according to Rystad Energy. Tankers traveling through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the UAE and Iran.
Iran had temporarily shut down parts of the strait in mid-February for what it said was a military drill, which led oil prices to jump about 6% higher in the days that followed.
Against that backdrop, eight countries that are part of the OPEC+ oil cartel announced they would boost production of crude Sunday. The Organization of Petroleum Exporting Countries, in a meeting planned before the war began, said it would increase production by 206,000 barrels per day in April, which was more than analysts had been expecting. The countries boosting output include Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman.
“Roughly one-fifth of global oil supply passes through the Strait of Hormuz, a vital artery for world trade, meaning markets are more concerned with whether barrels can move than with spare capacity on paper,” said Jorge León, Rystad's senior vice president and head of geopolitical analysis, in an email. "If flows through the Gulf are constrained, additional production will provide limited immediate relief, making access to export routes far more important than headline output targets.”
Iran exports roughly 1.6 million barrels of oil a day, mostly to China, which may need to look elsewhere for supply if Iran’s exports are disrupted, another factor that could increase energy prices.
FILE - Fishermen work in front of oil tankers south of the Strait of Hormuz Jan. 19, 2012, offshore the town of Ras Al Khaimah in United Arab Emirates. (AP Photo/Kamran Jebreili, File)
