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.”
Cable lobby group NCTA-The Internet & Television Association and the Interactive Advertising Bureau trade group sued the FTC in the conservative US Court of Appeals for the 5th Circuit. The lawsuit claims the 5th Circuit is a proper venue because a third plaintiff, the Electronic Security Association, has its principal offices in Dallas. That group represents security companies such as ADT.
A separate lawsuit was filed against the FTC in the 6th Circuit appeals court by the Michigan Press Association and National Federation of Independent Business. The two lawsuits were apparently coordinated as they both complain about the rule with the following text: