The Federal Trade Commission (FTC) is investigating Uber Technologies Inc. for alleged consumer rights violations connected to its Uber One service. Many customers complained about potential issues with the subscription plan’s cancellation and sign-in, launching the FTC investigation into Uber One.
Customers have claimed that they signed up for the plan without their knowledge and faced issues when they tried to cancel it. Uber One is a subscription service that offers discounts on rides and delivers to its 25 million members globally. However, the FTC received reports indicating that users were improperly signed up during routine app transactions.
Furthermore, customers described complicated cancellation procedures that contradicted consumer expectations of exploitation and transparency. The FTC’s investigation is aligned with an industry-wide crackdown on subscription services. Regulators have finalized a click-to-cancel rule that requires businesses to streamline subscription sign-ups and cancellations.
Business organizations dispute the viability of the rule, which attempts to shield customers against false advertising. In response, Uber defended its policies, stating that “Our cancellation process follows both the letter and the spirit of the law.” Despite these assurances, the FTC continues its investigation to ensure that Uber adheres to consumer protection laws.
Reports also suggest that the FTC proposed a settlement offer, but Uber countered it with its own offer. Similar allegations have targeted other tech giants, like Apple and Adobe, raising concerns about subscription practices.
Consumer Advocacy groups view the FTC investigation into Uber as a pivotal moment for addressing subscription-related problems. The outcome may shape future standards, encouraging businesses to prioritize user-friendly options.
