Silke Mayr Uber is facing an investigation by the U.S. Federal Trade Commission (FTC) regarding its Uber One subscription service, with a particular focus on the process for cancelling memberships. The company confirmed that the FTC is examining how users can enroll in and cancel the service.
Uber One, which has over 25 million subscribers globally, offers various perks, such as discounts on rides and deliveries. The FTC is looking into whether the cancellation process is clear and straightforward enough for consumers to easily opt out.
A spokesperson for Uber stated, “We will continue to work with the FTC and provide any necessary information about our cancellation policies. The process to cancel Uber One follows both the letter and the spirit of the law, and most cancellations take less than 20 seconds within the app.”
Uber has also acknowledged receiving a settlement proposal from the FTC and has submitted a counteroffer in response.
The investigation into Uber follows similar scrutiny faced by other tech companies like Apple and Adobe. These companies have been investigated by the FTC for cancellation processes that were seen as overly complicated, though they have denied the claims.
In response to growing concerns over subscription services, the FTC recently introduced a “click-to-cancel” rule, which requires companies to make it just as easy for consumers to cancel a subscription as it is to sign up for one. The rule has faced some opposition from business groups but aims to provide more transparency and fairness for consumers.
Additionally, the UK’s Digital Markets, Competition, and Consumers Act 2024 targets subscription traps, mandating clearer subscription terms and ensuring customers can easily cancel their contracts when desired.