Companies are trying to block US law that makes it easier to cancel online subscriptions

Organizations representing major technology, telecommunications and entertainment companies are trying to stop the “Click to Cancel” rule created by the United States Federal Trade Commission (FTC). make it easy to cancel subscriptions online. They filed a lawsuit last week.

As reported by ReutersOne of the groups that wants to prevent the rule from coming into force, which is planned to take place in 2025, is the Internet and Television Association (NCTA). Disney, Paramount, Warner Bros. It has members such as. Discovery, AMC, Charter, Comcast and Cost, among other brands.

Another organization that questions the law is the Interactive Advertising Bureau (IAB), an advertising organization affiliated with giants such as Google, Netflix, Meta, Amazon, Vizio and the NFL. The Electronic Security Association (ESA), which represents home security companies, is also among those unhappy with the situation.

In the lawsuit, these companies argued that the simplified subscription cancellation mechanism was created based on an “arbitrary and capricious” decision. Besides, Challenging the FTC’s authority to enforce such a ruleHe noted that the Commission seeks to “regulate consumer contracts for all companies in all sectors and industries of the economy.”

How does Click to Cancel work?

The new standard requires, among other things: companies obtain consumer approval automatically converts to paid models for subscription, auto-renewal, and sign up for free trials. They also need to make the terms clearer.

The main change is to simplify the online unsubscribe process, which should be as easy as signing up. The supplier is now obliged to provide a simple way to do this, cannot require the user to call, write a letter, or appear in person To end subscription.

Based on thousands of comments from people, consumer protection organizations, and companies, the rule was originally called “Repeal.” It will enter into force 180 days after publication. The FTC has not yet commented on the lawsuit filed by dissatisfied groups.