Three industry groups are suing to stop the Federal Trade Commission (FTC) from enforcing its new “Click to Cancel” rule that requires companies to do so. easy to cancel subscriptions, according Reuters. And yes, it's exactly what you'd expect.
Click Cancel to expand the Negative option rule Prohibit companies from making customers cancel services using a method other than the one they signed up for. Therefore, if you register online, you should be allowed to cancel online, rather than having to call a support line, write a letter, or show up in person. Most aspects of the rule, assuming it is not blocked, will take effect 180 days after its entry in the Federal Register.
That is “arbitrary, capricious and an abuse of discretion,” the Internet and Television Association, the Electronic Security Association and the Interactive Advertising Bureau allege in their lawsuit filed today with the U.S. Court of Appeals for the Fifth Circuit. The groups (many of whose member companies benefit from subscriptions that are easy to start and harder to stop) argue that the FTC is trying to “regulate consumer contracts for all businesses in all industries and in all business sectors.” the economy.”
In fact, the rule applies to any subscription that renews automatically, whether it's a gym membership or amazon Prime, including free trials or those plans that give you easy-to-make dinners. The horror!
