Uber probed by US regulator over subscription schedule
Uber probed by US regulator over subscription schedule
Uber is facing an investigation by the US Federal Trade percentage (FTC) into its flagship subscription schedule, the corporation has said.
As first reported by Bloomberg, the US customer watchdog was probing the ride-hailing giant over the enrolment and cancellation procedures of the service.
Uber One, which has more than 25 million subscribers around the globe, offers fee-paying members discounts on rides and deliveries.
The FTC did not immediately respond to a request for comment from BBC information.
“We will continue to respond any questions the FTC may have about our cancellation policies,” said an Uber spokesperson.
“The Uber One cancellation procedure follows both the note and the spirit of the law: Uber One members can easily cancel their membership in the app – in truth, the majority of those cancellations receive 20 seconds or less.”
The FTC contacted Uber with a proposal for settling the investigation and the corporation has since written back with a counter propose.
Other technology giants, including Adobe and Apple, have faced lawsuits from the FTC over cancellation policies that the regulator deemed overly complicated.
Those claims have been disputed by the companies.
Last month, the FTC finalised a ‘click to cancel’ rule, which aims to make it easier for people to complete subscriptions.
The recent 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 also takes aim at so-called subscriptions traps.
The Digital Markets, Competition and Consumers Act 2024 requires businesses to provide obvious information to consumers before they enter a subscription agreement.
It forces sellers to prompt customers that a free or low-expense trial is coming to an complete.
It also requires companies to ensure customers can easily complete a deal.
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