Cable companies, advertising firms, and newspapers are asking courts to block a federal “click-to-cancel” rule that would force businesses to make it easier for consumers to cancel services. Lawsuits were filed yesterday, about a week after the Federal Trade Commission approved a rule that “requires sellers to provide consumers with simple cancellation mechanisms to immediately halt all recurring charges.”
The 5th Circuit is generally regarded as the nation’s most conservative, but the 6th Circuit also has a majority of judges appointed by Republican presidents. When identical lawsuits are filed in multiple circuits, the Judicial Panel on Multidistrict Litigation randomly selects a court to handle the case.
The NCTA cable lobby group, which represents companies like Comcast and Charter, have complained about the rule’s impact on their ability to talk customers out of canceling. NCTA CEO Michael Powell claimed during a January 2024 hearing that “a consumer may easily misunderstand the consequences of canceling and it may be imperative that they learn about better options” and that the rule’s disclosure and consent requirements raise “First Amendment issues.”
“Too often, businesses make people jump through endless hoops just to cancel a subscription,” FTC Chair Lina Khan said. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”
a consumer may easily misunderstand the consequences of canceling and it may be imperative that they learn about better options
See, if it’s easy to cancel, then a consumer can leave your service, try something else, and then cancel that and come back if they don’t like the alternative.
Also, imperative for who? Your bottom line?
I read this as: “the customer has contract terms with us, where if they cancel they must pay termination fees and other fees where applicable and if they cancel they might financially harm themselves”
To which the obvious response would be, well you would list those on the page that you click. (But also… why your business model rely on cancelation fees?)
Definitely then the issue lies with click to subscribe, and not with click to cancel.
If the customer is insufficiently informed of any penalties for cancelling, then he shouldn’t have been allowed to subscribe in the first place.
That’s the whole point
I’m so sick of the 5th Circuit. We need legislation to end judge shopping. Every damn article about some terrible decision seems to come out of the Fifth Circuit.
“We live in the United States of Texas, Louisiana & Mississippi.” —The American Prospect
Just for reference: in my State (somewhere in Latin America), since 2007, we have a law that TL;DRs to “if you offer a service through a certain mean, you must offer the cancellation method through the same mean; plus by phone, or internet, or snail mail”.
It works like a charm because, contrariwise to what Michael Powell is claiming, customers aren’t such disgustingly stupid trash that will “accidentally” hit the cancel button, nor they deserve to be punished by making cancellation a fucking pain in the arse. (There’s probably similar laws elsewhere.)
But, Calling and threatening “I want to cancel” is the only way to get them to lower the $120 fuck-you price back to the market accurate $40 I signed up for.
You can still threaten to cancel. It will be even more effective when the power of cancelling is in your hands instead of theirs, and as easy as one click. Not sure if you were being sarcastic.
Careful with this though. They keep cancellation threats in a database so they can check if you’re serious
No, they need to be careful. I keep a personal database of companies that raise prices and have poor customer service.
I wish the FTC would tackle that next. Why should I pay twice as much for the exact same service my neighbor has because they signed up a month ago? I don’t mind rewards being given for signing up but the first bill (aside from installation fees) shouldn’t be any lower than mine.
Internet also needs to be regulated like a utility because it basically is one at this point.
Friendly reminder that under Obama internet service providers we were classified as utilities under Title II of the Communications Act of 1934.
Trump appointed Shit Pie, who reversed that rule as well as the net neutrality rule.
People, if you haven’t already, please vote.
My phone plan just dropped the $10/month discount for autopay because they’re price-gouging shit garglers. The second I clicked on the “port out number” option, they put up a banner offering $10/mo off for the next year. I do appreciate not waiting three hours on the phone just to turn down the offer anyway. MVNO it is!
