Cable TV industry groups ask court to block one-click subscription cancellation rule

Cable TV industry groups are seeking to block the Federal Trade Commission's (FTC)

Cable companies ask 5th Circuit to block FTC's click-to-cancel rule - Ars Technica

The Biden administration announced in August 2024 that it would make it easier to cancel subscriptions and memberships, citing that 'Americans' time is being sacrificed.' The Federal Trade Commission had been proposing to simplify the cancellation process even before this, and in line with the administration's policy, it presented rules that would make it mandatory to 'make it easier to cancel subscriptions.'

The final rule making the 'one-click cancellation' mandatory was presented in October. The rule will go into effect 180 days after publication in the Federal Register.

However, it is certainly more convenient for the companies that have made users sign contracts if it is not easy to cancel them. According to the news site Ars Technica, the cable TV industry association National Cable Television Association (NCTA) , the online advertising standards organization Interactive Advertising Bureau (IAB) , and the security industry association Electronic Security Association (ESA) have filed a lawsuit in the Fifth Circuit Court of Appeals seeking to block the 'one-click cancellation' rule.

Separately, the Michigan Newspaper Association and the National Federation of Independent Business (NFIB) filed a similar lawsuit in the Sixth Circuit Court of Appeals.

Both lawsuits argue that the FTC's final rule 'attempts to regulate consumer contracts with any business in any industry that offers a service or subscription that continues unless the customer seeks to cancel,' exceeding the FTC's statutory authority and violating the Constitution.

The FTC has not commented on the lawsuit. In announcing the final rule, FTC Chairman Lina Khan said, 'Too many companies put people through huge challenges just to unsubscribe from their subscriptions. Our rules will end these tactics and traps, saving Americans time and money. No one should have to pay for services they don't need.'