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NextImg:Three industry groups sue to block FTC’s ‘arbitrary, capricious’ ‘Click to Cancel’ rule - Washington Examiner

Three groups that represent businesses in the technology and entertainment industries are suing the Federal Trade Commission to block the Biden administration’s new “Click to Cancel” rule, which proponents say would make it easier to cancel subscriptions.

The NCTA, or the Internet & Television Association, the Electronic Security Association, and the Interactive Advertising Bureau have sued the FTC to block the rule, which they say is “arbitrary, capricious, and an abuse of discretion. [The FTC is attempting to] regulate consumer contracts for all companies in all industries and across all sectors of the economy,” according to several reports.

The rule, proposed last year, was created by the FTC “to make it as easy for consumers to cancel their enrollment as it was to sign up,” responding to consumer complaints that it can be too difficult or require too many steps to cancel subscriptions online.

In its last revision of the rule, the FTC said it had received over 16,000 public comments on the commission’s last rulemaking. The FTC has said it has received many complaints over “unfair or deceptive practices related to subscriptions, memberships, and other recurring-payment programs in an increasingly digital economy,” receiving as many as 70 consumer complaints a day, on average.

“Too often, businesses make people jump through endless hoops just to cancel a subscription,” FTC Chairwoman 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.”

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

The industry groups are reported to have said the rule “oversteps the FTC’s authority and was not supported by evidence,” hoping to block the rule.

The rule is set to go into effect 180 days after being published in the Federal Register.