An industry group representing telecom providers like Comcast and Charter has sued the FTC to block the recently-ratified “click-to-cancel” rule, as reported by Reuters. The NCTA, formerly known as the National Cable and Telecommunications Association, filed the suit with the 5th U.S. Circuit Court of Appeals in New Orleans on the grounds that the rule oversteps the FTC’s authority.
The Interactive Advertising Bureau, which represents the online advertising industry, and the Electronic Security Association, which represents the home security industry, are also involved in the lawsuit. The groups call the FTC ruling “arbitrary, capricious, and an abuse of discretion.” There’s also language in the suit that suggests that jumping through annoying hoops to cancel a subscription is actually helpful to consumers, according to USA Today. So this little mom and pop trade organization is just looking out for us, the little guy. I’m practically glowing with appreciation.
For news junkies, the lawsuit’s venue may have raised some eyebrows. The 5th U.S. Circuit Court of Appeals in New Orleans is widely considered to be the nation’s most right-leaning appeals court, so it’s where giant corporations and political entities like to drop suits like this.
Judges from this court temporarily banned the White House, FBI and the Surgeon General from urging social media companies to take down posts filled with misinformation. The court also invalidated a ban on bump stocks, limited access to the abortion pill mifepristone and made it difficult to fund the Consumer Financial Protection Bureau (CFPB.)
Several of these decisions were reversed by the Supreme Court, so the 5th Circuit is actually markedly more conservative than even SCOTUS. To that end, 12 of the 17 judges on the court were appointed by Republican presidents, with six being appointed by former President Trump. The NCTA and its industry partners have been accused by consumer advocacy groups of “venue shopping” by selecting a federal appeals court that would likely look favorably on the suit.
“The big businesses that deploy deceptive subscription models to trap customers are trying to sue their way out of this regulation to lower costs for millions of consumers,” Liz Zelnick, director for the watchdog group Accountable.US said in a statement published by USA Today. “We’ve seen this movie before, with big industry players venue shopping in a corporate-friendly jurisdiction regardless of the impact on Americans.”
No American should have to worry about being tricked into buying subscriptions and memberships – or staying in either against their will.
Today, my Administration is taking action to ensure folks don’t have to jump through hoops to cancel them. https://t.co/3TJFi362vh
— President Biden (@POTUS) October 16, 2024
The FTC ratified the “click-to-cancel” rule on October 16 in a vote that went down along party lines. Simply put, this ruling requires providers to make it as easy to cancel a subscription as it is to sign up for one. It prohibits companies from misrepresenting their recurring services and memberships.
“Too often, businesses make people jump through endless hoops just to cancel a subscription,” said Chair Lina Khan. “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.”
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Source: www.engadget.com