Industry groups are suing the FTC to stop its click to cancel rule

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 if they signed up online. 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 a wide range of advertising companies. The ESA represents home security firms. The lawsuit highlights concerns over regulatory authority following recent Supreme Court decisions that limit the power of regulators to address issues not explicitly covered by legislation. The industry groups contend that the FTC's actions could hinder their business models, which often make it easier to start subscriptions than to cancel them.

- Industry groups are suing the FTC over the "Click to Cancel" rule.

- The rule requires online cancellation options for subscriptions initiated online.

- The lawsuit claims the rule is an overreach of the FTC's regulatory authority.

- The rule is part of an expansion of the Negative Option Rule.

- Recent Supreme Court decisions have limited regulatory powers, impacting consumer protections.