Uber is currently under investigation by the US Federal Trade Commission (FTC) regarding the subscription procedures for its Uber One service. The ride-hailing giant confirmed that the FTC is looking into the company’s enrolment and cancellation practices.

Uber One, which serves over 25 million subscribers globally, offers various perks like discounts on rides and deliveries for a monthly fee. The FTC is examining whether the process of canceling a subscription is clear and user-friendly.

A spokesperson for Uber said, “We will continue to respond to any questions the FTC may have about our cancellation policies. The Uber One cancellation process is designed to follow both the letter and spirit of the law. In fact, most cancellations take 20 seconds or less within the app.”

In response to the investigation, Uber acknowledged receiving a settlement proposal from the FTC and has put forward a counter offer.

This is not the first time tech companies have faced regulatory action over subscription models. The FTC has previously investigated companies such as Adobe and Apple over cancellation practices that were seen as too complicated, though these companies have denied the allegations.

Last month, the FTC introduced a “click-to-cancel” rule that aims to make subscription cancellations easier for consumers. The rule, which has faced opposition from some business groups, requires companies to provide a straightforward cancellation process that is just as simple as the sign-up process.

Similarly, the UK passed the Digital Markets, Competition, and Consumers Act 2024, targeting subscription traps. The law mandates clear information before customers enter into subscription agreements and ensures companies remind users when a free or discounted trial is ending, alongside making the cancellation process more transparent and accessible.