US Regulator Investigates Uber’s Subscription Service

Uber has confirmed it is facing an investigation by the US Federal Trade Commission (FTC) concerning its primary subscription offering. As initially reported by Bloomberg, the US consumer protection agency is examining the ride-hailing company regarding the enrollment and cancellation procedures of the service. Uber One, which boasts over 25 million global subscribers, provides reduced prices on rides and deliveries for its paying members. The Federal Trade Commission did not provide an immediate response to a request for comment from BBC News. “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 – in fact, the majority of those cancellations take 20 seconds or less.” The FTC approached Uber with a proposal to settle the investigation, and the company has since submitted a counter-offer. Other major technology firms, including Adobe and Apple, have previously encountered lawsuits from the FTC concerning cancellation policies that the regulator deemed excessively complicated. These allegations have been disputed by the respective companies. Last month, the FTC finalized a ‘click to cancel’ rule, designed to simplify the process for individuals to terminate subscriptions. These new regulations, which have been challenged by some business groups, would compel companies to ensure that subscription sign-ups and cancellations are equally straightforward. Legislation introduced in the UK in May also targets what are known as “subscription traps.” The Digital Markets, Competition and Consumers Act 2024 mandates that businesses provide clear information to consumers before they commit to a subscription agreement. It requires sellers to inform customers when a free or low-cost trial is nearing its end. Furthermore, it obliges companies to ensure that customers can easily terminate a contract.