Cable firms to FTC: We shouldn’t have to let users cancel service with a click — Customers may “misunderstand the consequences of canceling,” say lobbyists::Customers may “misunderstand the consequences of canceling,” cable lobby says.

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    310 months ago

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    Lobbyists for cable companies and advertisers yesterday expressed their displeasure with a proposed “click-to-cancel” regulation that aims to make it easier for consumers to cancel services.

    Federal Trade Commission Chair Lina Khan has said that changes are needed because “some businesses too often trick consumers into paying for subscriptions they no longer want or didn’t sign up for in the first place.”

    NCTA-The Internet & Television Association, the primary trade group for cable companies like Comcast and Charter, said the rule would make it harder to offer deals to customers who are trying to cancel.

    The FTC also proposes that sellers be required to “provide an annual reminder to consumers enrolled in negative option programs involving anything other than physical goods, before they are automatically renewed.”

    “The proposed rule would disrupt the current regime by adding specific requirements dictating what auto-renewal disclosures must say and how they must be presented,” said Lartease Tiffith, the IAB’s executive VP for public policy.

    Tiffith defended auto-renewals generally, saying the practice of automatically renewing services brings “significant benefits to both businesses and consumers in the form of cost savings, convenience, and heightened value.”


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