The Federal Trade Commission (FTC) has launched an investigation into Uber, focusing on whether the company violated consumer protection laws by allegedly automatically enrolling individuals into its Uber One subscription service and making the cancellation process difficult, according to Bloomberg News.
Customer Complaints Prompt Investigation
The investigation was initiated earlier this year following customer complaints received by the FTC. Uber, in response to Bloomberg, stated that its cancellation process “adheres to both the letter and the spirit of the law” and claimed that customers can cancel their subscription in 20 seconds or less.
FTC’s Recent Push for Easier Cancellation
Recently, the FTC has been urging companies offering subscription services to simplify their cancellation procedures. In October, the commission finalized a rule known as “click-to-cancel,” which could affect a wide range of services from streaming platforms to gym memberships. However, this rule is currently facing legal challenges.
Settlement Talks
In the days following Donald Trump’s victory in the presidential election, the FTC reportedly attempted to negotiate a settlement with Uber. According to Bloomberg, Uber’s legal team described the proposed settlement as involving an “enormous monetary amount.”
