The Federal Trade Commission (FTC) has launched an investigation into Uber regarding its Uber One subscription service. The probe was initiated following complaints from customers who alleged that Uber was automatically enrolling them in the service and making it difficult to cancel.
According to a report by Bloomberg News, the FTC is looking into whether Uber violated consumer protection laws with its subscription service practices. Uber, on the other hand, maintains that its cancellation process is in compliance with the law and states that customers can cancel their subscriptions in 20 seconds or less.
This investigation comes at a time when the FTC has been focusing on making subscription services more user-friendly and easier to cancel. In fact, in October, the commission introduced a new “click-to-cancel” rule aimed at simplifying the cancellation process for various subscription-based services, including streaming platforms and gym memberships. However, this rule is currently facing legal challenges.
In the aftermath of the 2016 presidential election, the FTC reportedly attempted to negotiate a settlement with Uber. The details of the proposed settlement were described by Uber’s legal team as involving a significant financial penalty.
As the investigation unfolds, it will be interesting to see how Uber responds to the FTC’s inquiries and whether any changes will be made to its subscription service in light of the regulatory scrutiny. Stay tuned for further updates on this developing story.
