Groundwork’s Lindsay Owens on Click-to-Cancel Legal Challenge: “This lawsuit should be dismissed”

Groundwork’s Lindsay Owens on Click-to-Cancel Legal Challenge: “This lawsuit should be dismissed”

Today, NCTA – The Internet & Television Association and other industry trade groups filed to block the Federal Trade Commission’s Click-to-Cancel rule in the 5th U.S. Circuit Court of Appeals.

The FTC’s rule requires businesses to make it easy for consumers to cancel a subscription and includes strong protections against misrepresentation and new requirements for informed consent and disclosure.

Groundwork Collaborative Executive Director Lindsay Owens reacted with the following statement:

“Deceptive subscription models that cheat consumers are so profitable that certain industries are willing to go to court to protect their ability to overcharge consumers.

“The Federal Trade Commission’s click-to-cancel rule will save consumers time and money. This lawsuit should be dismissed.”

Email press@groundworkcollaborative.org to speak with a Groundwork expert about predatory pricing tactics.

BACKGROUND

• Groundwork’s collaboration with The American Prospect for an issue on “How Pricing Really Works” dove into subscription pricing in “The One-Click Economy,” which highlights the FTC’s “click-to-cancel” rulemaking.
• McKinsey found that businesses offering subscriptions grew by more than 300 percent from 2012 to 2018 and according to Statista, spending on subscriptions is estimated to grow to $1.26 trillion globally by the end of 2025.
• The “click-to-cancel” rule is overwhelmingly popular across party lines — supported by 83% of voters, including 85% of Democrats, 86% of independents, and 80% of Republicans according to polling.
• With rules and enforcement in place to ensure that subscriptions are easier to cancel, people will have the peace of mind to try new subscriptions. This is a rule that benefits honest marketing.