The US Federal Trade Commission's (FTC) upcoming adoption of the "Click to Cancel" rule is seeing major roadblocks from three industry groups who filed a lawsuit against the agency to hopefully stop its implementation. One of the main benefits of the 'Click to Cancel' is a way for consumers to easily unsubscribe or leave behind certain products or services if they no longer wish to continue.
Several tech companies have been notorious for giving the public a hard time in canceling their subscriptions or payments, and instead of easily moving forward, they are taken through a maze of steps before successfully doing so.
FTC's 'Click to Cancel' Rule Faces Lawsuits from Industry Groups
According to a new report by Reuters, three industry groups that are representing telecommunications, home security, and internet advertisers sectors are now suing the FTC for their nearing implementation of the 'Click to Cancel' rule. The lawsuit was filed over at the US Fifth Circuit Appeals Court earlier today, with the plaintiffs arguing against FTC's latest ruling.
The Internet and Television Association, together with the Electronic Security Association and the Interactive Advertising Bureau alleged that the FTC's new regulation is "arbitrary, capricious, and an abuse of discretion."
The FTC's latest rule will bring a massive effect across all industries that have subscription services, and the groups are arguing against this plan of the Commission to "regulate all consumer contracts for all companies."
Will Customers Benefit from FTC's Click to Cancel?
The FTC's focus on Click to Cancel is to help consumers against deceptive tactics that are implemented by many companies on their subscription programs, and it will go into effect after 180 days if it is filed into the Federal Register if it does not get blocked.
Customers are set to benefit from this new ruling as it will allow them to cancel a subscription as easily as they joined the service, and it has since been the topic of discourse in the growing subscription-based services available.
Hard-to-Cancel Subscriptions No More
The reign of hard-to-cancel subscriptions will soon be over should the FTC successfully implement its latest rule which is looking to empower consumers with a one-click capability to unsubscribe from a service. One of the most notorious companies from Big Tech that have tricky cancelation steps is Amazon, and it has since faced significant complaints from consumer groups and more for its "dark patterns."
Last year, the FTC made a bold move against these deceptive practices from online services and companies that have a subscription service that makes it difficult for customers to end their patronage. 'Click to Cancel' has since introduced a new kind of protection for consumers against these tactics, vowing that companies who continue to do so will face fines should it be implemented.
The industry saw that hard-to-cancel services are successful in their tactics that discourage customers from unsubscribing to the service, as it is more bothersome to cancel them than to stay and pay their dues. That being said, the FTC continued its campaign against these deceptive practices by many services, which industry groups are now protesting against, suing the FTC to hinder it from taking effect.
