Cable companies ask 5th Circuit to block FTC's click-to-cancel rule

Context: FTC Click-to-Cancel Rule and Challenge

  • Rule requires subscription cancellations to be at least as easy as sign-ups (e.g., online “click-to-cancel”).
  • Cable and related industries sued in the 5th Circuit, arguing the rule is “arbitrary, capricious, and an abuse of discretion” under the Administrative Procedure Act (APA) and exceeds FTC authority.
  • Some commenters see this as primarily about preserving profits from making cancellations difficult, not about genuine consumer confusion.

Judicial Politics and Forum Shopping

  • Many note the 5th Circuit’s conservative, deregulatory tilt and describe this filing as deliberate forum shopping.
  • Others push back by comparing reversal rates of different circuits (e.g., 5th vs 9th), arguing high reversal doesn’t automatically equal partisanship.
  • There is frustration that appellate courts are perceived as “legislating from the bench,” but also recognition that all circuits sometimes clash with the Supreme Court.

Agency Authority, Chevron, and APA Standards

  • Several explain that “arbitrary and capricious” is a process-focused standard: did the agency consider relevant factors, evidence, and reasonable alternatives.
  • Commenters stress that junking Chevron deference doesn’t remove arbitrary‑and‑capricious or “abuse of discretion” review.
  • Dispute over whether FTC is legitimately exercising delegated rulemaking power or illegitimately “making law” as part of a broader “regulatory shadow state.”

Arguments on the Merits of the Rule

  • Supporters: click-to-cancel directly targets dark patterns and consumer-hostile practices (cable, gyms, streaming, home security, etc.).
  • Skeptics/steelman: complex bundles (e.g., TV + internet + phone) and 911/lifeline implications make cancellation non-trivial; companies argue consumers need to be warned about side effects and pricing changes.
  • Others counter that sign-up is already far more complex/risky than cancellation, and bundling itself may be anti-consumer.

Consumer Experiences and Workarounds

  • Many recount extreme friction in canceling services (Comcast, gyms, magazines, phone/internet, SiriusXM historically).
  • Common coping strategies: virtual/proxy credit cards, cancelling direct debit at banks, giving “moving away” excuses; some note credit-score and collections risks in the U.S.
  • Some point to firms that do make cancellation easy (e.g., certain ISPs or Starlink) as proof it’s feasible.

Broader Governance Concerns

  • Widespread frustration with a gridlocked Congress that leaves policy to agencies and courts.
  • Debate over states’ rights vs federal regulation and overuse of the Commerce Clause.
  • Concerns that “process” challenges can both protect individuals from abuse and be weaponized to kill broadly popular consumer protections.