Multinational transport company, Uber is currently being probed by the US Federal Trade Commission (FTC) into its flagship subscription plan, according to a statement by the company.
The US consumer watchdog was investigating the ride-hailing giant over the enrollment and cancellation procedures of the service, according to a Bloomberg report.
Uber One has over 25 million subscribers globally and it offers fee-paying members discounts on rides and deliveries.
An Uber spokesperson had said;
“We will continue to answer any questions the FTC may have about our cancellation policies.”
“The Uber One cancellation process follows both the letter and the spirit of the law: Uber One members can easily cancel their membership in the app – in fact, the majority of those cancellations take 20 seconds or less.”
FTC had contacted Uber with a proposal for settling the investigation and the company has since written back with an offer countering it.
Other tech giants, including Adobe and Apple, have faced lawsuits from the FTC over cancellation policies that the regulator considered extremely complicated.
Those claims have however, been disputed by the companies.
Last month, the FTC concluded a ‘click to cancel’ rule, which aims to make it simpler for people to terminate their subscriptions.
These new regulations, did not sit well for some, as it has been challenged by some business groups who say it would force companies to make subscription sign-ups and cancellations similarly straightforward.
