Ride-sharing platform Uber is facing a probe by the U.S. Federal Trade Commission (FTC) concerning its subscription service Uber One.
According to a report by Bloomberg, FTC received complaints that Uber signed up users to Uber One without their consent while also making the cancelation process complicated and difficult. The FCT is now undertaking an investigation, which was launched earlier this year, to see if Uber violated consumer protection laws with its practice.
Uber released a statement following the reports, saying that the company is collaborating with FTC and will “continue to answer any questions” that FTC might have. It also added that the Uber One cancelation is a simple process that takes less than a minute to complete.
“The Uber One cancellation process follows both the letter and the spirit of the law: Uber One members can easily cancel their membership in the app — in fact, the majority of those cancellations take 20 seconds or less,” Uber spokesperson Noah Edwardsen stated.
Uber One allows subscribers to use Uber’s services at a discount for a fee of $9.99 on a monthly basis or a $96 annual fee. The company said in October that the subscription service had 25 million subscribers.
The news didn’t affect Uber’s stock, which remained mainly flat and closed at $71.62 per share on Wednesday. The company’s shares are currently 22.68% up year-to-date.