US Regulator Investigates Uber’s Subscription Plan

Uber is under investigation by the US Federal Trade Commission (FTC) regarding its flagship subscription service, the company has confirmed.

As reported by Bloomberg, the FTC is scrutinizing Uber’s enrollment and cancellation procedures for its Uber One service.

Uber One, which boasts over 25 million subscribers globally, offers paid members discounts on rides and deliveries.

The FTC has yet to respond to BBC News’ request for comment.

“We will continue to answer any questions the FTC may have about our cancellation policies,” said an Uber spokesperson. “The Uber One cancellation process follows both the letter and the spirit of the law: Uber One members can easily cancel their membership in the app, and most cancellations take 20 seconds or less.”

The FTC has approached Uber with a settlement proposal, to which the company has responded with a counteroffer.

Other tech giants, such as Adobe and Apple, have faced FTC lawsuits over cancellation policies considered too complex, though these companies have contested the claims.

Last month, the FTC introduced a “click to cancel” rule designed to simplify subscription cancellations. The new regulations, which some business groups have challenged, require companies to make both subscription sign-ups and cancellations equally straightforward.

Additionally, a new UK law passed in May targets subscription traps. The Digital Markets, Competition, and Consumers Act 2024 mandates businesses to provide clear information about subscriptions and to ensure customers are reminded when a free or low-cost trial is ending. It also requires companies to make it easy for customers to cancel their contracts.