Guess who's suing the FTC Click to cancel

Three industry groups are suing the Federal Trade Commission (FTC) to block it from enforcing its new “click to cancel” rule that would make it easier for companies to cancel subscriptions. Reuters. And yes, it is exactly what you would expect.

Click to Cancel Expands the negative option rule to prohibit businesses from canceling service for customers using a method that differs from the method they used to sign up. Therefore, if you sign up online, you must be allowed to cancel online, without the need to call a support line, write a letter or meet in person. Most aspects of the rule, assuming it is not blocked, will take effect 180 days after entry in the Federal Register.

It's “arbitrary, capricious, and an abuse of discretion,” the Internet and Television Association, Electronic Security Association and Interactive Advertising Bureau allege in a complaint filed today in the US Fifth Circuit Court of Appeals. The groups — many of whose member companies profit from subscriptions that are easy to start and hard to stop — argue that the FTC is trying to “regulate consumer contracts for all companies across all industries and all sectors of the economy.”

In fact, the rule applies to any auto-renewing subscription, whether it's a gym membership or Amazon Prime, with free trials or plans that send you easy-to-cook dinners. +Physical!