FTC Unleashes Broad Crackdown on Subscriptions, Data Security, and Labor Abuses

Federal Trade Commission (FTC)

WASHINGTON, D.C. — Federal regulators moved aggressively in mid-December on multiple fronts, targeting alleged deceptive subscriptions, massive data security failures, anticompetitive labor practices, and consumer cost abuses in a series of enforcement actions and policy moves led by the Federal Trade Commission.

The FTC, joined by 21 states and the District of Columbia, filed an amended complaint accusing Uber of charging consumers for its Uber One subscription without consent, failing to deliver promised savings such as zero-dollar delivery fees, and making cancellations unreasonably difficult. The lawsuit, first filed in April, alleges violations of the Restore Online Shoppers’ Confidence Act and state consumer protection laws and seeks civil penalties. Regulators say some users were automatically enrolled after free trials, while others were charged despite never knowingly signing up, and that canceling could require navigating up to 23 screens and 32 actions.

In a separate enforcement action, the FTC announced a proposed settlement with Utah-based Illusory Systems Inc., operating as Nomad, over a data breach that allowed hackers to steal approximately $186 million, with consumers losing about $100 million. The agency alleges the company failed to live up to its “security-first” claims by neglecting basic safeguards, failing to properly test code, and responding too slowly to known vulnerabilities. Under the proposed order, Nomad must implement a comprehensive security program, submit to biennial third-party assessments, and return recovered funds to affected consumers.

The commission also announced that grocery delivery company Instacart will pay $60 million in refunds to settle allegations it misled consumers with claims of free delivery, hid mandatory service fees that could add up to 15 percent to orders, obscured refund options, and enrolled users into Instacart+ memberships without express informed consent. The proposed order bars Instacart from misrepresenting delivery costs or satisfaction guarantees and requires clear disclosures and affirmative consent for subscription charges.

On the labor front, the FTC ordered building services contractor Adamas Amenity Services LLC to stop enforcing no-hire agreements that regulators say suppressed wages and restricted job mobility for largely low-wage workers in New Jersey and New York City. The proposed consent order requires Adamas to void existing restrictions, notify customers and workers, and post notices affirming employees’ right to seek other jobs.

The agency also announced a January 27 public workshop focused on anticompetitive noncompete agreements, signaling continued scrutiny of labor practices that limit wages and career mobility. The event follows recent enforcement actions and outreach efforts by the FTC’s Joint Labor Task Force.

Rounding out the week, the commission approved a modification to the Horseracing Integrity and Safety Authority’s Enforcement Rule, requiring FTC approval before subpoenas or civil actions are initiated under federal horse racing integrity law. The change takes effect January 18, 2026.

Across consumer protection, competition, labor, and data security, the FTC’s actions reflect an intensified enforcement posture as regulators move to rein in practices they say raise prices, erode trust, and limit economic opportunity.

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