### Legal Battle Erupts Over FTC's New Subscription Cancellation Rule

In a contentious legal challenge, the National Cable and Telecommunications Association (NCTA), alongside the Interactive Advertising Bureau and the Electronic Security Association, has filed a lawsuit contesting the Federal Trade Commission's (FTC) new rule mandating simpler cancellation methods for subscriptions. The case has been brought to the 5th U.S. Circuit Court of Appeals in New Orleans, a venue known for its conservative leanings.

The industry groups argue that the FTC's "click-to-cancel" rule, which aims to make it as straightforward to end a subscription as it is to begin one, overreaches the agency's authority. They describe the rule as "arbitrary, capricious, and an abuse of discretion," and suggest that forcing consumers to go through complex cancellation processes can actually be beneficial.

Interestingly, consumer advocacy groups have accused the plaintiffs of "venue shopping" by selecting a court that traditionally rules in favor of corporate interests. Liz Zelnick, director for the watchdog group Accountable.US, expressed her concerns, stating, "The big businesses that deploy deceptive subscription models to trap customers are trying to sue their way out of this regulation to lower costs for millions of consumers."

Despite the backlash, the FTC ratified the "click-to-cancel" rule along party lines, arguing that it will protect consumers from misleading subscription practices. FTC Chair Lina Khan commented, "Too often, businesses make people jump through endless hoops just to cancel a subscription. The FTC's rule will end these tricks and traps, saving Americans time and money."

With 12 of the 17 judges on the 5th Circuit Court appointed by Republican presidents, including six by former President Trump, the outcome of this lawsuit could have significant implications for how subscription services operate in the future. Meanwhile, President Biden's administration remains committed to ensuring that cancellation processes are straightforward, freeing consumers from unwanted and cumbersome subscription traps.