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.”
Hopefully, but many gyms don’t have a website, or if they do, no way to manage subscriptions there. I doubt they’d force companies to create a website just for this, they would just require cancelling to be as easy as signing up (that often requires signing a contract and whatnot).
If you can sign up on website, you cancel on website. If you sign up in person, you cancel in person. At least I believes the new rule is like this. It will be very weird for FTC only make this applicable to certain subscriptions, not universally applied.