Media Giants Take FTC to Court Over New “Click-to-Cancel” Rule

An industry group, representing Comcast, Disney, and Warner Bros. Discovery, is challenging the Federal Trade Commission’s (FTC) new rule that requires subscription cancellations to be as simple as signing up. Filed in the U.S. Court of Appeals for the Fifth Circuit, the lawsuit argues that the rule places unreasonable burdens on businesses.

The case was filed in the conservative-leaning Fifth Circuit, which has a history of ruling against regulatory overreach. This move signals the industry’s hope for a favorable ruling in a court where 12 of the 17 judges were appointed by Republican presidents, including six by former President Donald Trump.

The FTC introduced the “click-to-cancel” provision to address deceptive practices that make unsubscribing from services difficult, aiming to protect consumers from so-called “dark patterns” in subscription models. The FTC emphasized that the rule targets companies that trap customers in recurring payments through complex and confusing cancellation procedures.

The rule, introduced as part of the FTC’s amendment to its longstanding Negative Option Rule, requires companies to offer clear and easy cancellation methods to customers. Businesses that fail to comply face hefty penalties, a prospect that has sparked the lawsuit, with corporations arguing that implementing these changes could disrupt their business models and lead to increased operational costs.

For consumers, the outcome of this legal battle is significant, as it could determine how easy or difficult it will be to cancel subscription services moving forward. The FTC, in its defense, has pointed to widespread consumer frustration over the difficulty in ending services, particularly with companies that rely heavily on automated or hidden renewal schemes.

For now, the rule remains in place, providing consumers with easier cancellation methods as the legal proceedings unfold.

This case is just one part of a broader trend in which corporate America is pushing back against the FTC’s more aggressive regulatory stance under Khan’s leadership, a dynamic that could reshape consumer protections in the digital economy.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

One Response

  1. The freedom to be fraudulent and deceptive. Musk should be tweeting that soon. As long as it works for the rich..that is what constitutes “freedom” these days. I really wish desperate people would quit believing the American Dream will come their way any time soon.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

FTC and 17 States Sue Amazon, Alleging Monopoly Practices That Inflate Prices

The Federal Trade Commission (FTC) and 17 states have filed a lawsuit against Amazon (NASDAQ:...

Wednesday, September 27, 2023, 03:08:00 PM

Antitrust Trial Begins as FTC Challenges Meta’s Acquisition Strategy

A landmark antitrust trial that could reshape the social media industry began Monday as Meta...

Tuesday, April 15, 2025, 12:10:00 PM

Albertsons CEO Accused of Destroying Key Evidence Ahead of $24.6-Billion Kroger Merger Trial

The proposed $24.6 billion merger between grocery giants Kroger Co. (NYSE: KR) and Albertsons (NYSE:...

Thursday, August 22, 2024, 12:35:56 PM

FTC Finds Retailers Using Personal Data for Individual Pricing

...and are we surprised?...
Sunday, January 26, 2025, 07:26:00 AM

Courts Stop $24.6B Kroger-Albertsons Deal, Citing Consumer and Worker Harm

Two significant court rulings have halted the proposed $24.6 billion merger between grocery giants Kroger...

Wednesday, December 11, 2024, 11:19:00 AM