The Federal Trade Commission (FTC) has launched an investigation into Uber's subscription service practices following customer complaints about the company's Uber One program.
According to reports from Bloomberg, customers have alleged that Uber enrolled users into its Uber One subscription service without their consent and created obstacles when they attempted to cancel their memberships. The investigation began earlier this year.
Uber One, which has amassed over 25 million subscribers globally, offers members discounts on rides and delivery orders for an annual fee. The company maintains that its cancellation process is straightforward, with most users able to terminate their subscriptions within 20 seconds through the app.
"The Uber One cancellation process follows both the letter and spirit of the law," said Uber spokesperson Noah Edwardsen, adding that the company will continue cooperating with the FTC's inquiries.
The investigation comes as the FTC recently implemented its "click to cancel" rule, which requires companies to make subscription cancellations as simple as the sign-up process. The agency reports receiving nearly 70 complaints daily about recurring subscription practices.
This isn't Uber's first encounter with FTC scrutiny. The company previously reached settlements with the agency in 2017 over driver income misrepresentation and in 2018 regarding a data breach incident.
The FTC has been actively pursuing similar cases, having recently taken legal action against other tech giants like Amazon and Adobe over their subscription practices. While some business groups have challenged the new cancellation regulations, the FTC maintains its stance on protecting consumer rights in subscription services.
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