Uber is facing an investigation by the U.S. Federal Trade Commission (FTC) over its flagship subscription plan, the company announced.
As first reported by Bloomberg, the US consumer watchdog was investigating the ride-hailing giant over its service registration and cancellation procedures.
Uber One, which has more than 25 million subscribers worldwide, offers discounts on rides and deliveries to paying members.
The FTC did not immediately respond to BBC News’ request for comment.
“We continue to respond to any questions the FTC may have regarding our cancellation policy,” an Uber spokesperson said.
“Uber One’s cancellation process follows the letter and spirit of the law. Uber One members can easily cancel their membership in the app. In fact, most cancellations take less than 20 seconds.”
The FTC contacted Uber with an offer to settle the investigation, and the company subsequently responded with a counteroffer.
Other tech giants, including Adobe and Apple, are facing lawsuits from the FTC over cancellation policies that regulators deemed too complex.
Both companies dispute these claims.
Last month, the FTC finalized “click-to-cancel” rules aimed at making it easier for people to end their subscriptions.
The new regulation, which has been challenged by some industry groups, would force companies to make it equally easy to sign up and cancel subscriptions.
Legislation introduced in the UK in May also targets so-called subscription traps.
The Digital Markets, Competition and Consumers Act 2024 requires businesses to provide consumers with clear information before they enter into a subscription agreement.
This requires sellers to notify customers that their free or low-cost trial is ending.
Companies also need to make it easy for customers to terminate their contracts.
