Cable Companies to the FTC: We Shouldn't Have to Let Users Cancel Service with One Click

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Lobbyists For cable companies And advertisers yesterday Express their dissatisfaction with A propose "click to cancel" regulation that goals has TO DO he Easier For consumers has Cancel service.

Federal Trade Commission Chair Lina Khan has said that changes are necessary because "a few companies Also often trick consumers In paid For subscriptions they No longer to want Or doesn't sign up For In THE First of all place." THE FTC propose THE new together of rules In March 2023, And comments Since industry groups were taken yesterday In A audience chaired on by A administrative law judge.

NCTA-The the Internet & Television Association, THE primary trade band For cable companies as Comcast And Charter, said THE ruler would be TO DO he Stronger has offer offers has clients WHO are trying has cancel.

"THE propose simple click to cancel mechanism can not be SO simple When such practices are implied. A consumer can easily misunderstanding THE consequences of cancelation And he can be imperative that they learn about better choice," NCTA CEO Michael Powell said has THE audience. For example, A customer "can confront difficulty And involuntary consequences if they to want has Cancel only A service In THE wrap," as "Cancel part of A At a reduced price pack can increase THE price For remaining services."

Powell said that cable business representatives can generally talk clients out of cancelation. "Out of millions of cancellations, complaints received by NCTA members Rising has only A tiny fraction of 1 percent," he said. "Three out of four of THE cable And broadband clients WHO called has Cancel END up retain a few Or all service After Speaking with A agent."

Powell worries that retain clients will become harder because, he say it FTC "proposal stop almost any of them communication without First of all obtaining A of the consumer unambiguous, affirmative consent. That could disturb THE continuity of important services, to choke disabled useful information And give up potential savings. He certainly raised First of all Amendment problems."

Powell Also said THE cost of comply, including reconversion employees And maintain recordings For longer that current practical - could force cable companies has increase prices. He claims that THE FTC estimate of compliance costs East Also weak.

FTC: Sellers must take "No" For A answer

THE FTC said A of It is propose rules "would be require companies has TO DO he has less as easy has Cancel A subscription as he was has to start he. For example, if You can sign up online, You must be able has Cancel on THE even website, In THE even number of steps."

Sellers would be Also to have has get customer consent Before they "not additional offers Or changes When A consumer try has Cancel their registration," THE FTC said. Before manufacturing those locations, sellers would be to have has "ask consumers if they to want has hear them. In other words, A seller must take 'No' For A answer And on audience 'No' must immediately implement THE cancelation process."

THE FTC Also propose that sellers be required has "provide A annual reminder has consumers registered In negative option programs involving Nothing other that physical goods, Before they are automatically renewed."

HAS yesterday's hearing, THE FTC Also heard Since THE Interactive Advertisement desk (IAB), A entrance hall band For THE online advertisement industry. "THE propose ruler would be disturb THE current diet by add specific requirements to dictate What automatic renewal disclosures must say And how they must be present," said Lartease Tiffith, THE IAB executive Vice-president For public politics.

Tiffith argued that THE ruler will burden companies "And restrict innovation without any of them corresponding advantage. And as THE technology expands, these prescriptive requirements will constrain companies Since be able has adapt their offerings has THE needs of their customers."

Tiffith defended automatic renewals in general, saying THE practical of automatically renew services brought "significant benefits has both companies And consumers In THE form of cost savings, convenience, And increase value."