Why it matters: The Federal Trade Commission has launched an investigation into Uber’s subscription service practices, examining allegations that the company enrolled customers in Uber One without consent and made cancellations difficult. The news comes from Bloomberg, and this probe comes as regulators intensify scrutiny of subscription-based services across the digital economy.
The Big Picture: Techcrunch reports that the investigation, opened earlier this year, follows customer complaints about Uber One, the company’s $9.99 monthly subscription service that offers discounts on rides and deliveries. With approximately 25 million subscribers according to Sherwood, the service’s practices could have widespread consumer impact.
- Investigation focuses on enrollment and cancellation practices
- Part of broader FTC crackdown on subscription services
- Follows recent “click-to-cancel” rule implementation
Company Response: Uber defends its practices, stating its cancellation process “follows both the letter and spirit of the law.” According to Tech Times, the company claims customers can cancel subscriptions in under 20 seconds.
- Uber cooperating with investigation
- Maintains compliance with regulations
- Defends cancellation process transparency
Regulatory Context: This investigation aligns with the FTC’s recent push for easier subscription cancellations. In October, the commission finalized a “click-to-cancel” rule, though it faces legal challenges from trade associations.
Looking Forward: The probe’s outcome could influence how digital subscription services handle enrollments and cancellations, potentially setting new standards for consumer protection in the subscription economy. Back in August, the company was also hit with a GDPR fine for Uber’s mishandling of driver data.
