Investigation by US consumer watchdog into Uber’s subscription plan

Uber is facing an investigation by the US Federal Trade Commission (FTC) over its flagship subscription plan, the company has said.

As first reported by Bloomberg, the US consumer watchdog was investigating the ride-hailing giant over the service’s registration and cancellation practices.

Uber One, which has more than 25 million subscribers worldwide, offers fee-paying members discounts on rides and deliveries.

The FTC did not immediately respond to a request for comment from BBC News.

“We will continue to respond to any questions from the FTC about our cancellation policies,” an Uber spokesperson said.

“Uber One’s cancellation process follows both the letter and the spirit of the law: Uber One members can easily cancel their membership in the app – in fact, most of these cancellations take 20 seconds or less. are.”

The FTC contacted Uber with a proposal to settle the investigation, and the company subsequently wrote back with a counteroffer.

Other technology companies, including Adobe and Apple, have faced lawsuits from the FTC over cancellation policies that the regulator deemed overly complex.

These claims have been disputed by the companies.

Last month, the FTC finalized the ‘Click to cancel’ rulewhich aims to make it easier for people to cancel subscriptions.

The new regulations, which have been challenged by some business groups, would force companies to make subscription sign-ups and cancellations equally straightforward.

A law introduced in the UK in May is also aimed at so-called subscription traps.

The Digital Markets, Competition and Consumer Act 2024 requires businesses to provide consumers with clear information before entering into a subscription agreement.

This forces sellers to remind customers that a free or low-cost trial is about to expire.

It also requires companies to ensure that customers can easily terminate the contract.