Uber probed by US shopper watchdog over subscription plan | EUROtoday

Uber is dealing with an investigation by the US Federal Trade Commission (FTC) into its flagship subscription plan, the corporate has mentioned.

As first reported by Bloomberg, the US shopper watchdog was probing the ride-hailing big over the enrolment and cancellation procedures of the service.

Uber One, which has greater than 25 million subscribers all over the world, provides fee-paying members reductions on rides and deliveries.

The FTC didn’t instantly reply to a request for remark from BBC News.

“We will continue to answer any questions the FTC may have about our cancellation policies,” mentioned 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 contacted Uber with a proposal for settling the investigation and the corporate has since written again with a counter supply.

Other expertise giants, together with Adobe and Apple, have confronted lawsuits from the FTC over cancellation insurance policies that the regulator deemed overly sophisticated.

Those claims have been disputed by the businesses.

Last month, the FTC finalised a ‘click on to cancel’ rulewhich goals to make it simpler for individuals to finish subscriptions.

The new laws, which have been challenged by some enterprise teams, would power firms to make subscription sign-ups and cancellations equally easy.

A regulation launched within the UK in May additionally takes goal at so-called subscriptions traps.

The Digital Markets, Competition and Consumers Act 2024 requires companies to supply clear data to shoppers earlier than they enter a subscription settlement.

It forces sellers to remind prospects {that a} free or low-cost trial is coming to an finish.

It additionally requires firms to make sure prospects can simply finish a contract.