Uber is going through an investigation by the US Federal Commerce Fee (FTC) into its flagship subscription plan, the corporate has stated.
As first reported by Bloomberg, the US shopper watchdog was probing the ride-hailing large over the enrolment and cancellation procedures of the service.
Uber One, which has greater than 25 million subscribers all over the world, gives fee-paying members reductions on rides and deliveries.
The FTC didn’t instantly reply to a request for remark from BBC Information.
“We are going to proceed to reply any questions the FTC might have about our cancellation insurance policies,” stated 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 – actually, nearly all 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 expertise 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 on to cancel’ rule, which goals to make it simpler for individuals to finish subscriptions.
The brand new laws, 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 Can also 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.
