Guess who's suing the FTC to stop click to cancel
Three industry groups are suing the FTC to block the "Click to Cancel" rule, which requires online subscription cancellations, claiming it overreaches authority and complicates their business models.
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Three industry groups, including the NCTA, ESA, and IAB, are suing the Federal Trade Commission (FTC) to block its new "Click to Cancel" rule, which mandates that companies allow customers to cancel subscriptions online in the same manner they signed up. The groups argue that the rule is arbitrary and an overreach of the FTC's authority, claiming it regulates consumer contracts across all industries. The rule is part of an expansion of the Negative Option Rule and is set to take effect 180 days after being published in the Federal Register unless halted by the lawsuit. The NCTA represents major service providers and entertainment studios, while the IAB includes numerous advertising-related companies, and the ESA covers home security firms. The lawsuit highlights the industry's concern over losing the ability to make cancellation processes more complex, which they argue is essential for their business models.
- Industry groups are suing the FTC over the "Click to Cancel" rule.
- The rule requires online cancellation options for subscriptions.
- The plaintiffs claim the rule is arbitrary and an abuse of discretion.
- The rule is part of an expansion of the Negative Option Rule.
- The lawsuit could delay the rule's implementation, set for 180 days after publication.
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6 commentsYes, and? That's a large part of what the FTC is intended to be doing. Pointing that out doesn't seem to be an argument that they are doing anything wrong.
The FTC's official remit is:
> The FTC enforces federal consumer protection laws that prevent fraud, deception and unfair business practices. The Commission also enforces federal antitrust laws that prohibit anticompetitive mergers and other business practices that could lead to higher prices, fewer choices, or less innovation.
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Related
Canceling subscriptions should be as easy as signing up – proposed federal rule
The Biden administration proposed regulations to simplify subscription cancellations, requiring minimal effort for consumers. This initiative targets various industries and aims to enhance consumer protections amid rising costs.
US wants to make it easier for you to click the 'unsubscribe' button
The U.S. government is launching the "Time Is Money" initiative to simplify subscription cancellations, involving multiple agencies to enhance consumer protection and address hidden fees, despite some business opposition.
FTC Announces "Click-to-Cancel" Rule Making It Easier to Cancel Subscriptions
The FTC's new "click-to-cancel" rule simplifies subscription cancellations, effective in 180 days, prohibits misleading marketing, and aims to protect consumers amid rising complaints about negative option practices.
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The FTC's new "click to cancel" rule simplifies subscription cancellations, targeting negative option marketing. It mandates clear disclosures and consent, with penalties for non-compliance, addressing rising consumer complaints.
Lina Khan vs. Planet Fitness
The FTC's "Click to Cancel" rule simplifies subscription cancellations, receiving political support but facing opposition from lobbyists. Its narrow passage indicates potential legal challenges amid consumer protection and corporate interests tensions.