D.C. Memo: NCTA Sues FTC over New Click-to-Cancel Rules
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Click to Court: NCTA – The Internet & Television Association sued the Federal Trade Commission over Chair Lina Khan’s new "click-to-cancel" rules designed to speed consumer separation from their subscription services. NCTA's filing Tuesday in the U.S. Court of Appeals for the Fifth Circuit said the FTC rule was "arbitrary, capricious, and an abuse of discretion" under the Administrative Procedure Act. The filing described the FTC rules as "an attempt to regulate consumer contracts for all companies in all industries and across all sectors of the economy in which the customer purchases a service or subscription that will continue unless the customer exercises the option to cancel." NCTA, joined by the Electronic Security Association and the Interactive Advertising Bureau, said the FTC's rule concerning 'negative option' contracts would cover "over a billion paid subscriptions in the U.S."
