Uber is being investigated by the US Federal Trade Commission (FTC) over how it handles its Uber One subscription plan, especially around how people sign up and cancel their memberships.
Uber One, which has over 25 million users worldwide, gives members discounts on rides and deliveries.
The FTC is looking into whether Uber’s cancellation process is clear enough for customers. Uber says its cancellation process is simple, with most members being able to cancel in 20 seconds or less through the app. The company is in talks with the FTC to settle the investigation.
This comes after other big companies, like Adobe and Apple, faced similar investigations over complicated cancellation policies.
Recently, the FTC introduced a new rule to make it easier for customers to cancel subscriptions, and businesses are now required to make both sign-ups and cancellations clear and easy.
In the UK, a law introduced earlier this year also aims to prevent so-called subscription traps, making sure companies clearly inform customers about trial periods and allow easy cancellation.
This investigation highlights the growing concern over how companies handle subscriptions and cancellations, and it’s a reminder for businesses to be transparent with their customers .
Credit : BBC
https://www.bbc.com/news/articles/c8xp0enrkl8o