Uber is under investigation by the U.S. Federal Trade Commission (FTC) concerning its Uber One subscription service. The company confirmed that the FTC is looking into the service’s enrolment and cancellation procedures.
Uber One, with over 25 million global subscribers, offers members benefits such as discounts on rides and deliveries. The FTC is scrutinizing whether the process to cancel memberships is clear, straightforward, and in compliance with consumer protection laws.
An Uber spokesperson said, “We will continue to cooperate with the FTC and answer any questions regarding our cancellation policies. The Uber One cancellation process follows both the letter and spirit of the law, with most cancellations taking 20 seconds or less within the app.”
Uber acknowledged receiving a settlement proposal from the FTC and has responded with a counteroffer.
Uber joins other tech giants, including Apple and Adobe, in facing scrutiny over subscription cancellation practices. These companies have faced similar investigations by the FTC, with disputes over allegations of overly complex cancellation processes.
Recently, the FTC introduced a new “click-to-cancel” rule that aims to make canceling subscriptions as easy as signing up for them. Some business groups have challenged the rule, but it mandates that companies simplify both sign-up and cancellation procedures.
In the UK, the Digital Markets, Competition, and Consumers Act 2024 tackles subscription traps, requiring businesses to clearly inform consumers about subscription terms and make cancellation processes easy to navigate.
