Canceling internet and cable subscriptions has long been a test of patience. While signing up for service often involves just a few clicks, trying to cancel requires a phone call with retention specialists, and sometimes a lot of negotiation.
The Federal Trade Commission (FTC) recently introduced a “click-to-cancel” rule to address this issue, mandating that companies must offer an online cancellation option if they accept online sign-ups. This rule is set to take effect in about 180 days, but the industry is pushing back. The Electronic Security Association (ESA), the Interactive Advertising Bureau (IAB), and the National Internet and Television Association (NCTA) are collectively suing the FTC, aiming to block the rule.
We take a look at their reasons for opposing the rule in my latest video.
The industry associations filing the lawsuit represent companies that would be directly impacted by the new regulation. ESA represents companies that provide home security services, IAB represents a broad range of advertising and subscription-driven businesses, and NCTA advocates for cable giants like Comcast, Cox, and Charter along with a number of cable networks. Their stance is that click-to-cancel is overly broad and doesn’t consider consumer interests or industry realities. They argue the current system benefits consumers, though evidence suggests otherwise.
For consumers, canceling a subscription can be a headache. For instance, Comcast requires either a phone call with a “retention specialist”, a trip to a local store, or even a letter in the mail to cancel. But they offer quick and easy online options for initial orders, upgrades and add-ons.
While the industry maintains that this process is straightforward, consumers tell a different story. Many consumers, like the ones who documented their difficulties on the FTC’s docket, report lengthy hold times and repeated offers instead of straightforward cancellations. Complaints and frustrations are also quite prevelant across Reddit and other social media platforms. This difficulty isn’t exclusive to Comcast; providers like Frontier follow a similar model, offering one-click purchases and upgrades but requiring a call to cancel.
There are notable exceptions, however. YouTube TV and Starlink both allow easy online cancellation, demonstrating that such policies are indeed feasible.
The real reason they are likely opposing these measures is that it makes it easier for consumers to exercise their market power. It’s a question of competition and convenience, both of which would likely improve under the click-to-cancel model.