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Cable companies ask 5th Circuit to block FTC’s click-to-cancel rule | Cable companies worry rule will make it hard to talk customers out of canceling (arstechnica.com)

submitted 1 month ago* (last edited 1 month ago) by ForgottenFlux@lemmy.world to c/technology@lemmy.world

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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."

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[–] linearchaos@lemmy.world 23 points 1 month ago (1 children)

They made their own bed here by making it so ridiculously hard.

I was going to a gym and I moved to get out of that $20 a month contract I had to write a letter and deliver it to them by hand.

When I canceled my DirecTV service I was on the phone for over an hour. Half of that was spent waiting for someone.

If you want me to have to talk to somebody before exiting a contract I'm okay with that but I need to talk to them right then and I need them to take no for an answer.

Also the whole raising the rates until people terminate and then offering them lower rates is absolute bullshit

[–] yonder@sh.itjust.works 8 points 1 month ago

I think waiting on the phone for an hour just to argue with someone to cancel a subscription is reasonable, as long as the signup process also involved waiting on the phone for an hour before an agent tried to talk you out of buying the service.

But if I signed up on a website in 30 seconds, it should take tine or less to unsubscribe on the same website.