Uber is dealing with 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 client 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 world wide, gives 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 might 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 legislation: 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 supply.
Different know-how giants, together with Adobe and Apple, have confronted lawsuits from the FTC over cancellation insurance policies that the regulator deemed overly difficult.
These claims have been disputed by the businesses.
Final month, the FTC finalised a ‘click to cancel’ rule, which goals to make it simpler for individuals to finish subscriptions.
The brand new rules, which have been challenged by some enterprise teams, would power corporations to make subscription sign-ups and cancellations equally simple.
A legislation launched within the UK in Might also takes intention at so-called subscriptions traps.
The Digital Markets, Competitors and Customers Act 2024 requires companies to offer clear info to shoppers earlier than they enter a subscription settlement.
It forces sellers to remind clients {that a} free or low-cost trial is coming to an finish.
It additionally requires corporations to make sure clients can simply finish a contract.
