Industry Groups Sue FTC Over 'Click-to-Cancel' Rule

The new regulation aims to simplify subscription cancellations, prompting legal challenges over its scope and authority.

The 'Click-to-Cancel' rule mandates that canceling a subscription must be as easy as signing up, targeting deceptive practices in automatic renewals.
NCTA, Interactive Advertising Bureau, and Electronic Security Association have filed lawsuits claiming the rule exceeds the FTC's authority.
The lawsuits argue the rule is 'arbitrary and capricious,' and allege it imposes unnecessary burdens on businesses across various sectors.
Consumer advocates support the rule, highlighting the need to protect consumers from complex cancellation processes and unwanted charges.
The FTC, citing authority under Section 18 of the FTC Act, asserts that the rule addresses unfair or deceptive practices effectively.