Industry Groups Sue FTC Over Cancellation Rule

A coalition of industry groups, including the NCTA, Interactive Advertising Bureau, and Electronic Security Association, has filed a lawsuit in the 5th U.S. Circuit Court of Appeals to block the Federal Trade Commission's (FTC) recent 'click to cancel' rule. This rule mandates that canceling subscriptions must be as easy as signing up, which the plaintiffs argue oversteps the FTC's authority and lacks sufficient evidence to support its implementation. The rule, finalized on October 16, aims to enhance consumer rights by simplifying subscription cancellations, addressing growing complaints about the difficulty of terminating services. However, the legal challenge reflects concerns from major companies like Comcast and Disney about potential regulatory overreach and its impact on the subscription economy. The dissent from two Republican commissioners during the rule's approval signals internal contention within the FTC, as critics argue it could set a precedent affecting future consumer protection regulations. The case's outcome could significantly influence how businesses manage subscriptions and customer interactions moving forward.