Cable Industry Trade Group Sues FTC, Seeking to Block ‘Click-to-Cancel’ Rule
variety.comTodd Spangler NY Digital Editor The trade group representing the U.S.’s largest cable operators and programmers is among three associations that sued the FTC, seeking to block the agency’s newly adopted “click-to-cancel” rule — which is designed to let consumers more easily cut the cord on subscriptions.
NCTA – The Internet & Television Association, joined by the Electronic Security Association, representing companies in the electronic life safety and security industry, and the Interactive Advertising Bureau, filed the lawsuit Oct.
22 in the 5th Circuit Court of Appeals. The suit seeks an order vacating the FTC’s click-to-cancel rule. The groups argue that the FTC’s order issuing the click-to-cancel final rule “is arbitrary, capricious and an abuse of discretion within the meaning of the Administrative Procedure Act, 5 U.S.C. § 701, et seq.” and that it is “unsupported by substantial evidence,” according to the complaint.
The lawsuit also asserts the FTC acted beyond its statutory authority, in violation of the U.S. Constitution. “Petitioners respectfully request that this Court hold unlawful, vacate, enjoin, and set aside the Final Rule and provide such additional relief as may be appropriate,” the NCTA, ESA and IAB said in the suit.
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