Skip to main content

The context you need, when you need it

When news breaks, you need to understand what actually matters — and what to do about it. At Vox, our mission to help you make sense of the world has never been more vital. But we can’t do it on our own.

We rely on readers like you to fund our journalism. Will you support our work and become a Vox Member today?

Join now

Uber faces a fresh probe from U.S. regulators over its privacy practices

It could blossom into another new legal headache for the embattled ride-hailing company.

TechCrunch Disrupt SF 2014 - Day 1
TechCrunch Disrupt SF 2014 - Day 1
Uber CEO Travis Kalanick
Steve Jennings/Getty Images for TechCrunch

One of the U.S. government’s most powerful consumer protection watchdogs appears to be quietly probing Uber and the company’s privacy practices.

The inquiry is under way at the Federal Trade Commission, according to four sources familiar with the matter, where the agency’s investigative staff appears to have focused its attention on some of the data-handling mishaps that have plagued the company in recent years — perhaps including employees’ misuse of “god view,” a tool that had previously allowed some at Uber to spy on the whereabouts of politicians, celebrities and others using the ride-hailing app.

The sources cautioned to Recode that FTC staff regularly question companies on consumer-protection matters, like privacy — and often, the agency chooses not to pursue any penalties while closing its investigations as quietly as it began them.

Still, the scrutiny could easily blossom into a full-fledged legal complaint against Uber — a reality the company knows well. This January, the agency penalized Uber for misleading claims about drivers’ potential earnings as well as the ride-hailing company’s vehicle-financing program. The resulting settlement with the FTC required Uber to pay $20 million in refunds to affected drivers.

Tony Romm is the senior editor for policy and politics at Recode. He can be reached at tony@recode.net, or on Signal, Confide, iMessage and WhatsApp at 215.779.9597.

This time, the full extent of Uber’s conversations with the FTC remains unclear. A spokeswoman for the company declined comment this week, as did an aide to the agency’s chairman, Maureen Ohlhausen.

For Uber, the FTC’s interest is only its latest headache. It has had to address allegations of sexism in the workplace; it’s grappled with the missteps of its chief executive, Travis Kalanick, who on Tuesday revealed he would take a leave of absence from the company; and it finds itself locked in a legal war against Google amid accusations that one of Uber’s former top engineers stole self-driving car technology from the search giant.

Nor is an FTC probe the only pending government investigation into Uber’s conduct: Another federal agency, the Justice Department, appears to have opened a criminal probe into the company’s use of software, called “Greyball,” that essentially allowed Uber to hide rides from regulators — particularly in cities where Uber did not have permission to operate its service.

For its part, the FTC doesn’t bring criminal cases, but it can force companies — through a variety of means — to alter their business practices.

Sometimes, the agency takes action through what are called closing letters, a public acknowledgement that the FTC has looked into an incident — and could punish a company if it errs again.

In other cases, though, the FTC can file a formal legal complaint alleging a company misled its consumers, treated them unfairly or threatened corporate competitors. Those complaints are settled if a company agrees to change its practices, or they’re fought over in court if a company disputes the government’s charges.

In recent years, the FTC has brokered such settlements with the likes of Facebook, Google and Twitter, including for mishaps related to mishandling users’ data. In those cases, the agency’s punishments often have included a requirement that tech companies submit to 20 years of regular privacy checkups by the FTC.


This article originally appeared on Recode.net.

More in Technology

Podcasts
Are humanoid robots all hype?Are humanoid robots all hype?
Podcast
Podcasts

AI is making them better — but they’re not going to be doing your chores anytime soon.

By Avishay Artsy and Sean Rameswaram
Future Perfect
The old tech that could help stop the next airborne pandemicThe old tech that could help stop the next airborne pandemic
Future Perfect

Glycol vapors, explained.

By Shayna Korol
Future Perfect
Elon Musk could lose his case against OpenAI — and still get what he wantsElon Musk could lose his case against OpenAI — and still get what he wants
Future Perfect

It’s not about who wins. It’s about the dirty laundry you air along the way.

By Sara Herschander
Life
Why banning kids from AI isn’t the answerWhy banning kids from AI isn’t the answer
Life

What kids really need in the age of artificial intelligence.

By Anna North
Culture
Anthropic owes authors $1.5B for pirating work — but the claims process is a Kafkaesque messAnthropic owes authors $1.5B for pirating work — but the claims process is a Kafkaesque mess
Culture

“Your AI monster ate all our work. Now you’re trying to pay us off with this piece of garbage that doesn’t work.”

By Constance Grady
Future Perfect
Some deaf children are hearing again because of a new gene therapySome deaf children are hearing again because of a new gene therapy
Future Perfect

A medical field that almost died is quietly fixing one disease at a time.

By Bryan Walsh