Sunday, February 16, 2025

US consumer watchdog investigates Uber’s subscription plan.

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Uber is being looked into by the US Federal Trade Commission for its subscription plan called Uber One. This plan gives discounts to members who pay a fee for rides and deliveries. The FTC is checking how people can sign up and cancel this service. Uber says they follow the rules for cancelling memberships and make it easy for members to do so in the app. The FTC has made a proposal to settle the investigation, and Uber has made a counter offer. Other big tech companies like Adobe and Apple have had issues with the FTC about cancelling services. The FTC recently made a new rule called ‘click to cancel’ to make it simpler for people to end subscriptions. In the UK, a new law called the Digital Markets, Competition and Consumers Act 2024 also aims to protect consumers from subscription traps. It requires businesses to give clear information before people sign up for subscriptions and make it easy to end contracts.


Vocabulary List:

  1. Subscription /səbˈskrɪpʃən/ (noun): An arrangement to receive something typically a service or product on a regular basis by paying in advance.
  2. Commission /kəˈmɪʃ.ən/ (noun): A group of individuals officially charged with a particular function.
  3. Proposal /prəˈpoʊ.zəl/ (noun): A formal suggestion or plan put forward for consideration.
  4. Competition /ˌkɒmp.ɪˈtɪʃ.ən/ (noun): The activity or condition of striving to gain or win something by defeating or establishing superiority over others.
  5. Consumers /kənˈsjuː.mərs/ (noun): Individuals who purchase goods or services for personal use.
  6. Clarity /ˈklær.ɪ.ti/ (noun): The quality of being coherent and intelligible.

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