Uber’s Subscription Service Under Investigation by FTC

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The Federal Trade Commission is currently investigating Uber for potential violations of consumer protection laws related to its Uber One subscription service. According to Bloomberg News, the investigation was prompted by customer complaints alleging that Uber made it difficult to cancel the service after automatically enrolling individuals.

Uber has defended its cancellation process, stating that it complies with the law and allows customers to cancel in 20 seconds or less. However, the FTC has been advocating for easier cancellation processes for subscription services and recently implemented a “click-to-cancel” rule to address this issue.

In the aftermath of the 2016 presidential election, the FTC reportedly attempted to reach a settlement with Uber, which the company’s lawyers deemed to involve a significant financial penalty. The outcome of the investigation and any potential settlement remains uncertain as legal challenges to the FTC’s new rule on subscription services continue to unfold.

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