Uber is under investigation by the United States Federal Trade Commission (FTC) regarding the enrolment and cancellation procedures of its flagship subscription plan, Uber One. The probe, first reported by Bloomberg, focuses on whether the ride-hailing giant’s practices comply with regulatory standards.

Uber One, a subscription service boasting over 25 million members worldwide, provides paying customers with discounts on rides and deliveries. However, the FTC’s scrutiny aligns with broader concerns about subscription policies that may hinder consumers from canceling services.

In response to the investigation, an Uber spokesperson stated, “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.”

The FTC has reportedly reached out to Uber with a settlement proposal, to which the company has responded with a counteroffer. The regulatory body has not provided any public comment on the matter.

This inquiry places Uber alongside other tech giants such as Adobe and Apple, which have faced legal challenges over allegedly complex cancellation processes. These claims, too, have been contested by the respective companies.

The FTC recently finalized its ‘click-to-cancel’ rule, designed to simplify subscription cancellations. Under the new regulations, businesses are required to make sign-ups and cancellations equally accessible. While some business groups have opposed these rules, the FTC remains firm in its commitment to protecting consumer rights.

In a parallel move, the United Kingdom’s Digital Markets, Competition and Consumers Act 2024 introduced measures to curb “subscription traps.” The law mandates clear communication about subscription terms, reminders before free trials end, and streamlined cancellation processes.

The outcome of the FTC’s investigation into Uber could have significant implications for subscription-based services across industries. As consumer protection agencies tighten their grip on business practices, companies may need to revise their policies to align with evolving standards.