Uber is going through an investigation by the US Federal Commerce Fee (FTC) into its flagship subscription plan, the corporate has mentioned.
As first reported by Bloomberg, the US shopper watchdog was probing the ride-hailing big over the enrolment and cancellation procedures of the service.
Uber One, which has greater than 25 million subscribers all over the world, presents fee-paying members reductions on rides and deliveries.
The FTC didn’t instantly reply to a request for remark from BBC Information.
“We’ll proceed to reply any questions the FTC could have about our cancellation insurance policies,” mentioned an Uber spokesperson.
“The Uber One cancellation course of follows each the letter and the spirit of the regulation: Uber One members can simply cancel their membership within the app – in reality, the vast majority of these cancellations take 20 seconds or much less.”
The FTC contacted Uber with a proposal for settling the investigation and the corporate has since written again with a counter provide.
Different know-how giants, together with Adobe and Apple, have confronted lawsuits from the FTC over cancellation insurance policies that the regulator deemed overly sophisticated.
These claims have been disputed by the businesses.
Final month, the FTC finalised a ‘click on to cancel’ rule, which goals to make it simpler for folks to finish subscriptions.
The brand new laws, which have been challenged by some enterprise teams, would pressure corporations to make subscription sign-ups and cancellations equally easy.
A regulation launched within the UK in May additionally takes intention at so-called subscriptions traps.
The Digital Markets, Competitors and Customers Act 2024 requires companies to offer clear info to customers earlier than they enter a subscription settlement.
It forces sellers to remind prospects {that a} free or low-cost trial is coming to an finish.
It additionally requires corporations to make sure prospects can simply finish a contract.
