Lina Khan vs. Planet Fitness

The Federal Trade Commission (FTC) has introduced a new regulation known as the "Click to Cancel" rule, aimed at simplifying the cancellation process for subscriptions. This rule mandates that canceling a subscription should be as easy as signing up for one, addressing widespread consumer complaints about deceptive practices in the subscription economy, which has grown to nearly a trillion dollars. Companies like Planet Fitness have faced criticism for making it difficult for customers to cancel memberships. The rule has garnered significant media attention and political support, including endorsements from President Biden and Vice President Harris. However, it has also faced pushback from various lobbyists and industry groups, who argue that the regulation could harm businesses and stifle innovation. The FTC's authority to implement this rule is based on its long-standing mandate to protect consumers from unfair and deceptive practices. Despite the rule's popularity, it passed with a narrow 3-2 vote within the FTC, indicating potential challenges ahead from conservative judges who may view it skeptically. The ongoing debate highlights the tension between consumer protection and corporate interests in the rapidly expanding subscription market.

- The FTC's "Click to Cancel" rule aims to simplify subscription cancellations.

- The regulation has received broad political and media support.

- Companies like Planet Fitness are criticized for deceptive subscription practices.

- Lobbyists are actively opposing the rule, citing potential negative impacts on businesses.

- The rule's narrow passage in the FTC suggests possible legal challenges ahead.