Uber is currently being investigated by the US Federal Trade Commission (FTC) regarding the cancellation process of its Uber One subscription service. The company confirmed that the FTC is reviewing the enrollment and cancellation methods used for the popular ride-hailing service’s subscription plan.
Uber One, which has over 25 million subscribers worldwide, offers benefits such as discounted rides and deliveries for a monthly fee. The FTC is focusing on whether the process for canceling a subscription is transparent and user-friendly.
A spokesperson for Uber stated, “We will continue to cooperate with the FTC and answer any questions about our cancellation policies. The cancellation process for Uber One is designed to comply with the law, and most cancellations take 20 seconds or less within the app.”
In response to the investigation, Uber acknowledged receiving a proposal from the FTC to settle the matter and has offered a counterproposal.
Uber is not alone in facing regulatory scrutiny over subscription services. Other tech giants, including Adobe and Apple, have been investigated by the FTC for complex cancellation processes, although they have contested these claims.
The FTC recently implemented a new “click-to-cancel” rule, which aims to simplify the process for customers wishing to cancel subscriptions. While some business groups have opposed the rule, it mandates that companies make subscription sign-ups and cancellations equally straightforward.
In addition, the UK’s Digital Markets, Competition, and Consumers Act 2024 targets subscription traps by requiring businesses to provide clear information before customers agree to subscription terms and ensure the cancellation process is simple and accessible.