• by Wendy Davis , Yesterday

A coalition of advocacy groups are urging the Federal Trade Commission to revive the 2024 "click-to-cancel" rules that would have enabled consumers to easily terminate recurring subscriptions to newspapers, gyms and other businesses.

"Subscription traps, or those pesky schemes where companies trick customers into paying for a good or service on a recurring basis and then make it impossible to get out of, are ubiquitous in the American economy," organizations including the Electronic Privacy Information Center, National Consumer Law Center and others said in comments filed late last week with the FTC.

"In general, businesses with subscription models have shown little interest in making cancellation processes easy for consumers," the groups write. "That lack of voluntary action militates for clearer, enforceable laws."

The comments come in response to the FTC's call for input on a petition filed by the Consumer Federation of America and American Economic Liberties Project, which asked the agency to take steps to reinstate the 2024 rules.

The tech group Computer and Communications Industry Association -- which counts large companies including Amazon, Google and Meta as members -- weighed in against reviving the rules.

"One of the first considerations of any rulemaking should include a finding of prevalent unfair or deceptive practices that have harmed consumers," the group wrote, contending that the Consumer Federation of America and American Economic Liberties Project didn't present evidence to justify that finding.

The 2024 rules specifically would have required companies to offer a “simple” cancellation mechanism, and allow consumers to cancel subscriptions through the same medium that was used to purchase them. In practice, the mandate would have required businesses that accept subscriptions through online platforms to also allow people to cancel through an online platform.

The FTC approved the rules in 2024 by a 3-2 vote, with both Republicans -- including current FTC Chair Andrew Ferguson -- dissenting.

Last year, the 8th Circuit Court of Appeals struck down the regulations at the request of the Interactive Advertising Bureau, Michigan Press Association, NCTA -- The Internet & Television Association, Chamber of Commerce and other business groups.