FTC investigates accusation Uber cheats ‘reward’ customers: sources

The federal government is investigating allegations that Uber is charging customers as the ride-sharing giant phases out its ‘Uber Rewards’ loyalty program, The Post has learned.

In August, Uber announced it would be discontinuing Uber Rewards starting November 1st. Program launched in 2018 It uses a free points-based system to offer perks like free rides and discounted meal delivery, and focuses on Uber One, a paid subscription service.

However, the Federal Trade Commission has launched an informal investigation into complaints that Uber is making it difficult to redeem Uber Rewards points before they expire, a source close to the situation told The Post.

The company sent an email to customers announcing the end of the program in August. according to reportsHowever, some have not received any emails and “didn’t know” it was ending. One source who has earned more than 20,000 points (worth about $150 for rides) says that an unsuccessful attempt to redeem the points resulted in a repeated “Sorry, something went wrong, please try again later” message. displayed.

“Uber just wants to apologize for the error, not actually pay,” an irate customer told The Post.

A source close to the FTC told The Post that the FTC could announce a more formal investigation into Uber ending its rewards program by the end of this month. The source added that Uber should expand opportunities for users to redeem points as a result of the glitch.

The FTC investigation revealed that former Uber chief security officer Joe Sullivan last week charged with obstruction of justice For not reporting the cyber hack to federal authorities. Sullivan, who paid hackers a $100,000 “bug bounty” to protect user data in 2016, tried to prevent regulators from learning about the payment, the FTC claims. doing. Sullivan could face his eight years in prison.

“The Fed has been paying close attention to Uber, from its ongoing hacks that put consumers’ personal information at risk, to this scam-like rewards program nonsense,” a source close to the FTC added. rice field. “The bottom line is that there is a ‘pool’ of problems that Uber faces internally. “

It’s not clear how much money Uber will save by exiting the program without paying the points properly, but people close to the FTC think it could be in the millions. increase.

Uber CEO Dara Khosrowshahi told Bloomberg In August, he said his focus at the company was “profitability” as the company’s stock had fallen more than 35% over the past year. People close to Khosrowshahi say he investigated every part of the company, including the rewards program, to see if it would benefit the company’s shareholders.

Starting November 1st, Uber will offer all customers a one-month free trial of Uber One. But the fine print reveals that registered users will automatically renew unless opted out, at a monthly charge of $9.99.

Over the past decade, the FTC has focused on protecting users from fraudulent reward programs. In 2010, Institution enforced regulations This mandates that businesses must use gift cards for at least five years before the money on those cards expires.

An Uber spokesperson didn’t respond to a request for comment.

An FTC spokeswoman declined to comment.