Uber Technologies Inc UBER has turned profits as of late, helped in part by its “Uber One” subscription. However, the Federal Trade Commission (FTC) is reportedly investigating the company over an alleged breach of consumer protection laws.
What Happened: The FTC opened the investigation earlier this year, according to Bloomberg, citing documents it obtained.
The investigation focuses on customer complaints about being enrolled in the Uber One subscription without their consent. Customers have also raised concerns that canceling the subscription is unnecessarily difficult.
Uber One is a $9.99 monthly subscription that provides discounts on rides and Uber Eats.
The regulatory agency has previously pursued cases against Amazon.com Inc, Adobe Inc and others for similar cancelation practices.
The FTC sent a complaint to Uber shortly following Donald Trump‘s election win on Nov. 5 seeking a monetary settlement, Bloomberg reports. Uber rejected the FTC’s offer, alleging the agency attempted to fast-track a resolution before Trump took office.
In the waning days of the Biden Administration, the FTC has accelerated several of its investigations.
Why it Matters: The company announced in October that Uber One had over 25 million subscribers. It has also recently expanded to India, according to the Times of India.
The ongoing FTC probe is not the first time Uber has caught the attention of regulators.
Uber and the FTC settled a lawsuit in 2018 over allegations that the San Francisco, California-based company exaggerated driver compensation in advertising. As part of the settlement, Uber refunded an average $222.96 to affected drivers.
In September, Forbes columnist Len Sherman called for regulators to investigate the company for anti-competitive behavior.
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