Uber Technologies Stock News

The Federal Trade Commission filed a lawsuit Monday (April 21) against Uber, alleging the company violated laws with deceptive billing and cancellation practices.

The suit is an indication that the commission's close scrutiny of the tech industry will continue in the Trump administration.

Uber (UBER) shares fell Monday as the U.S. Federal Trade Commission filed a lawsuit alleging “deceptive billing and cancellation practices” related to the company's Uber One subscription service.

Shares of ride-hailing and delivery leader Uber (UBER -3.51%) were initially doing much better than the plunging stock market today, with only moderate declines as of midday. However, in the afternoon, shares sank as much as 5.3% at one point, before recovering to a 4.4% decline by 2:26 p.m.

Uber signed up some users for its paid subscription without their consent, the US FTC said Monday. Uber One provides users with discounts and money back on orders and rides.

The Federal Trade Commission filed a lawsuit Monday against Uber, alleging the ride-hail and delivery giant charged customers for its Uber One subscription service without their consent. The lawsuit also claims Uber failed to deliver the savings promised in its subscription service and made it unreasonably difficult for users to cancel despite its “cancel anytime” promises.

Uber stock was lower as the FTC sued the ride-hail company for alleged deceptive practice for its Uber One subscription.

Uber falsely claimed that users would save about $25 a month through the service, the FTC said.