FTC Asks Court To Reject Challenge To Click-To-Cancel Rules

The Federal Trade Commission is asking a federal appellate court to reject advertising and business organizations' challenge to click-to-cancel rules that aim to let consumers easily terminate recurring subscriptions to newspapers, gyms, and other businesses. The agency's filing comes in response to a lawsuit brought by the Interactive Advertising Bureau, Michigan Press Association, NCTA -- The Internet & Television Association, Chamber of Commerce and other business groups that are seeking to invalidate the rules. Among other terms, the click-to-cancel rules require companies to offer a “simple” cancellation mechanism, and allow consumers to cancel subscriptions through the same medium that was used to purchase them. The rules also provide that cancellation mechanisms must be “at least as easy to use” as the sign-up mechanisms. In practice, the requirements mean that businesses that accept subscriptions through online platforms must also allow people to cancel through an online platform.