Uber is under investigation by the Federal Trade Commission for potentially violating consumer protection laws. The investigation, prompted by consumer complaints, centers on allegations that Uber automatically enrolled people in its Uber One subscription service and made it difficult to cancel. According to Bloomberg News, Uber claims their cancellation process is compliant with the law and can be done in 20 seconds or less.
The FTC has been advocating for easier cancellation processes for subscription services. In October, they introduced a “click-to-cancel” rule that could impact various industries, such as streaming services and gym memberships. However, this rule is currently facing legal challenges.
Following the election of Donald Trump, the FTC reportedly attempted to reach a settlement with Uber, which the company’s lawyers described as involving a significant financial penalty.
