### Cable and Internet Providers Challenge FTC’s New Cancellation Rule in Court

An industry group for cable and internet providers, alongside other associations, initiated legal action on Wednesday to halt a Federal Trade Commission (FTC) regulation that mandates simplified cancellation procedures for subscriptions.

The lawsuit, led by NCTA - The Internet & Television Association, along with representatives from the home security and online advertising sectors, was filed with the 5th U.S. Circuit Court of Appeals in New Orleans. They argue that the "click to cancel" rule exceeds the FTC's legal powers and is not backed by sufficient evidence.

NCTA, which includes major entities like Charter Communications, Comcast Corp, and Cox Communications, as well as media giants such as Disney Entertainment and Warner Bros. Discovery, claims the rule is overly broad. The Electronic Security Association and the Interactive Advertising Bureau are also part of the legal challenge.

The FTC formalized the rule on October 16 after reviewing extensive feedback from various stakeholders, including individuals, industry representatives, and consumer advocates. The regulation demands that businesses secure consumer consent for subscriptions, auto-renewals, and free trials that transition into paid memberships. Moreover, the cancellation process must be as straightforward as the sign-up method.

Notably, the rule bans the requirement for consumers, who subscribed through an app or website, to interact with a chatbot or customer service agent to cancel. Companies offering in-person sign-ups must provide online or phone options for cancellation.

The 5th Circuit Court, known for its business-friendly stance, has a majority of its 17 active judges appointed by Republican presidents, with six of them nominated by former President Donald Trump.