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.”
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
Yippee! The death of cable is fast approaching, hopefully.
To be fair, users should talk to a subscribe specialist before being able to cancel 🤪
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.
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.
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.
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!
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?
Also wouldn’t the argument apply to subscribing as well? Consumers may not understand the consequences of subscribing to said service. Therefore, “click to subscribe” should also be banned.
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?)
That’s the whole point
When I want to cancel I want to cancel. I don’t want to be put in line for over half an hour and then have to have a painful argument with some poor employee who gets punished if I somehow figure out the secret code that makes them cancel the account. And then have to do it all over again one month later because the account didn’t cancel because of “technical problems”.
If they make it that hard to cancel, they should make it that hard to subscribe.
Do gyms next.
Oh, and can we also extend this to banks? Sometimes closing a bank account or credit card is like pulling teeth (have to call between 9-5 EST, must navigate stupid phone menu first, then you need to listen to and agree to a disclosure agreement, etc. If I want to cancel, I should be able clear the account and cancel.
My gym required me to go the location I signed up and cancel in person lul. I just told them I don’t live in the country anymore and I’m calling from abroad, they can either cancel or get charge backed. They canceled quick.
I think a bank should be more complex. If you have all sorts of auto drafts, withdraws, checks, etc. you’ll want to make sure you got all of those.
It should absolutely be simpler but I don’t mind an extra check for banks where all your money is held.
Services like gyms and Netflix, they don’t have any excuse. My life will not be as adversely affected as cancelling a bank account.
I though that applies all kinds of subscriptions. No?
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.
“Won’t someone please think of the shareholders‽”
Sucks to suck, I’m so looking forward to easy cancellation from services.
I really hope they roll this out to all services, including:
- gyms
- banks
- insurance
If the customer really wants to undo it after, I’m sure the company can help with that…
The fact that they are able to make these arguments and a judge takes it seriously… Is all you need to know who rules the peasants.
First Amendment now protects a corpos right to fuck you over.
But when private comapany blocks your speech on their platform for any reason is not 1a issue?
Hmmm, do these clowns have to be logically consistent or do they just win every time.
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” …
Perhaps the consumer has “learn[ed] about better options” at another company, or that a “better option” for them is to not purchase the service at all from anyone. I’m sure the … ::flips pages:: … cable company is offering a completely holistic assessment of the consumer’s needs to help them make the best decision for themselves, right?
…and that the rule’s disclosure and consent requirements raise “First Amendment issues.”
“It is our First Amendment right to browbeat people into
not being our customers anymore!staying as our customers when they tell us they don’t want to be!”(edit oops)
Good! Even though I HATE these BULLSHIT Services that cost me THOUSANDS a Year that I can’t Opt Out of it’s in MY Best Interest to let Corporations SCREW ME because I’m a Republican who HATES Corporations but I Hate GAY KIDS More something something TRANS ON ME!
Don’t fuck this up 5th circuit.
I know you love to do that, a lot.
Just don’t though, ok?
Imagine if we had 10s of billions a year to drag all these companies and governments into long court battles for OUR rights. Corporations should be second.
