FTC: Cross-Industry 'Click to Cancel' Rule Well Within Our Power
The argument that the FTC can't adopt rules affecting more than one industry -- such as the agency's "click to cancel" rule -- is contrary to statutory text, case law and decades of practice, the FTC told the 8th U.S.…
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Circuit Court of Appeals in a brief Monday (docket 24-3137). NCTA is among the parties challenging the "click to cancel" rule (see 2411220029). In its response brief, the FTC said the statute authorizing its rulemaking includes no multiple-industry restriction, and it has a long history of cross-industry rulemaking. The FTC said click to cancel doesn't bar "negative option" programs where buyers are charged on a recurring basis unless they take steps to cancel. Instead, it adopts measures that prohibit material misrepresentations and requires disclosure of information such as how much and when a consumer will be charged.