The Federal Trade Commission is investigating Uber to assess whether the company breached consumer protection laws by reportedly automatically enrolling users in its Uber One subscription service and making the cancellation process more difficult, according to Bloomberg News.
This inquiry commenced earlier this year after the FTC received multiple complaints from consumers. In response to Bloomberg, Uber claimed that its cancellation process “complies with both the letter and the spirit of the law” and emphasized that customers can cancel their subscriptions in 20 seconds or less.
Recently, the FTC has been pushing for companies with subscription services to streamline their cancellation processes. In October, the commission instituted a new “click-to-cancel” rule that could impact a range of services, from streaming services to gym memberships. However, this regulation is currently under legal scrutiny.
After Donald Trump’s election as president, the FTC reportedly attempted to encourage Uber to reach a settlement, with Uber’s legal representatives describing the resolution as involving an “enormous financial sum.”
