An industry group representing telecommunications providers such as Comcast and Charter sued the FTC “Click to cancel” rule, . Formerly known as NCTA filed suit in the 5th U.S. Circuit Court of Appeals in New Orleans, arguing that the rule exceeded the FTC’s authority.
The Interactive Advertising Bureau, which represents the online advertising industry, and the Electronic Security Association, which represents the home security industry, are also involved in the lawsuit. The groups call the FTC’s decision “arbitrary, capricious and an abuse of discretion.” The suit also includes language suggesting that jumping through annoying hoops to cancel a subscription is actually beneficial to consumers. . So this little mom and pop merchandising organization is only looking out for us, the little guy. I’m practically glowing with gratitude.
For news buffs, the location of the trial may raise some eyebrows. The U.S. Court of Appeals for the 5th Circuit in New Orleans is widely considered the court of the land. so huge corporations and political institutions like to throw such suits.
Judges of this court The FBI and the Surgeon General have urged social media companies to remove posts full of misinformation. The court also canceled the ban on access to shares and Consumer Financial Protection Bureau (CFPB.)
Several of these decisions have been overturned by the Supreme Court, so the 5th Circuit is actually more conservative than even SCOTUS. For this purpose, 12 of the 17 judges in the court were appointed by Republican presidents, and six by former President Trump. NCTA and its industry partners have been accused by consumer advocacy groups of “seat shopping” by choosing a federal appeals court that would hear the suit favorably.
“Big businesses that use deceptive subscription models to trap customers are trying to get out of this regulation to cut costs for millions of consumers,” said Liz Zelnick, director. said in a statement published by USA Today. “We’ve seen this movie before, where big industry players shop in corporate-friendly jurisdictions regardless of the impact on Americans.”
No American should have to worry about being tricked into buying subscriptions and memberships or being held against their will.
Today, my Administration is taking steps to ensure people don’t have to jump through hoops to cancel them. https://t.co/3TJFi362vh
— President Biden (@POTUS) October 16, 2024
FTC Ratifies “Click to Cancel” the vote fell along party lines. Simply put, this decision requires providers to make unsubscribing as easy as signing up. It prohibits companies from misrepresenting recurring services and memberships.
“Too often, companies make people jump through endless hoops to unsubscribe,” said chair Lina Khan. “The FTC’s rule will end these tricks and traps, saving Americans time and money. “No one should be stuck paying for a service they no longer want.”
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