United States: The US Federal Trade Commission (FTC) is investigating Uber over the enrolment and cancellation procedures of its flagship subscription plan, Uber One. The service, which boasts over 25 million global subscribers, offers deals on rides and deliveries for a monthly fee.
First reported by Bloomberg, the probe centres on whether Uber’s practices align with regulatory provisions for subscription services. The FTC recently introduced its “click to cancel” rule, developed to ensure that cancelling subscriptions is as simple as signing up. This rule has faced pushback from some business groups but aims to eradicate so-called “subscription traps.”
An Uber spokesperson addressed the investigation, stating that, “We will continue to respond to any questions the FTC may have about our cancellation policies. 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.”
Uber confirmed that the FTC had suggested a settlement, to which the company has responded with a counter-offer. The consumer watchdog has yet to comment on the matter. The scrutiny of subscription models is not new. The FTC has previously challenged major tech firms like Adobe and Apple over allegedly convoluted cancellation processes, disputes that the companies have denied.
This issue is not limited to the US. In May, the UK raised the Digital Markets, Competition and Consumers Act 2024. The legislation requires businesses to clearly outline subscription terms, remind customers about trials ending, and ensure contracts can be easily cancelled. Uber’s compliance with evolving global constraints remains under the spotlight as authorities tighten rules on consumer rights.
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