Telecom Industry's Legal Battle Against Click-to-Cancel Rule by FTC

Telecom Giants vs. FTC's Click-to-Cancel Regulation

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, representing the online advertising sector, and the Electronic Security Association, advocating for home security, are also involved in the lawsuit. The groups describe the FTC ruling as arbitrary, capricious, and an abuse of discretion.

Consumer Advocacy and Industry Response

• The lawsuit indicates that cancelling subscriptions may actually benefit consumers.
• Notably, the 5th Circuit has a history of conservative rulings, leading some to accuse the NCTA of venue shopping.
• Industry leaders argue the FTC’s regulation hampers their business practices.

As stated by Liz Zelnick, director for Accountable.US, “The big businesses that deploy deceptive subscription models to trap customers are trying to sue their way out of this regulation.”

The Click-to-Cancel Rule Explained

Expected to simplify subscription cancellation, the click-to-cancel rule mandates equal ease in subscription cancellation compared to the sign-up process. As FTC Chair Lina Khan emphasized, “Nobody should be stuck paying for a service they no longer want.”