Cable companies ask 5th Circuit to block FTC’s click-to-cancel rule
arstechnica.com
Cable companies worry rule will make it hard to talk customers out of canceling.

Cable companies, advertising firms, and newspapers are asking courts to block a federal “click-to-cancel” rule that would force businesses to make it easier for consumers to cancel services. Lawsuits were filed yesterday, about a week after the Federal Trade Commission approved a rule that “requires sellers to provide consumers with simple cancellation mechanisms to immediately halt all recurring charges.”

The 5th Circuit is generally regarded as the nation’s most conservative, but the 6th Circuit also has a majority of judges appointed by Republican presidents. When identical lawsuits are filed in multiple circuits, the Judicial Panel on Multidistrict Litigation randomly selects a court to handle the case.

The NCTA cable lobby group, which represents companies like Comcast and Charter, have complained about the rule’s impact on their ability to talk customers out of canceling. NCTA CEO Michael Powell claimed during a January 2024 hearing that “a consumer may easily misunderstand the consequences of canceling and it may be imperative that they learn about better options” and that the rule’s disclosure and consent requirements raise “First Amendment issues.”

“Too often, businesses make people jump through endless hoops just to cancel a subscription,” FTC Chair Lina Khan said. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”

  • ZapBeebz_@lemmy.worldEnglish
    118·
    21 days ago

    a consumer may easily misunderstand the consequences of canceling and it may be imperative that they learn about better options

    See, if it’s easy to cancel, then a consumer can leave your service, try something else, and then cancel that and come back if they don’t like the alternative.

    Also, imperative for who? Your bottom line?

    • ShepherdPie@midwest.socialEnglish
      52·
      21 days ago

      Also wouldn’t the argument apply to subscribing as well? Consumers may not understand the consequences of subscribing to said service. Therefore, “click to subscribe” should also be banned.

    • Corkyskog@sh.itjust.worksEnglish
      20·
      21 days ago

      I read this as: “the customer has contract terms with us, where if they cancel they must pay termination fees and other fees where applicable and if they cancel they might financially harm themselves”

      To which the obvious response would be, well you would list those on the page that you click. (But also… why your business model rely on cancelation fees?)

      • ByteJunk@lemmy.worldEnglish
        11·
        20 days ago

        Definitely then the issue lies with click to subscribe, and not with click to cancel.

        If the customer is insufficiently informed of any penalties for cancelling, then he shouldn’t have been allowed to subscribe in the first place.