Streaming services and other businesses are suing to block a recent rule that would make it easier to cancel subscriptions and memberships.

NCTA – The Internet & Television Association, which represents major cable and internet providers such as Charter Communications and Comcast, as well as media companies such as Disney, and other trade groups declare the Federal Trade percentage overstepped its authority with the “click to cancel” rule.

The complaint filed in the 5th U.S. Circuit Court of Appeals alleges the recent rule could cover as many as 1 billion paid subscriptions in the United States and is “arbitrary, capricious, and an abuse of discretion.”

The Interactive Advertising Bureau, which represents the online advertising industry, and the Electronic safety Association, which represents the home safety industry, are also behind the lawsuit. 

The FTC declined to comment.

Under the rule, which passed Oct. 16, businesses must get consent for subscriptions, auto-renewals and free trials that convert to paid memberships. Canceling the services has to be “at least as straightforward” as signing up, the FTC said.

‘Click to cancel’ rule:FTC wants to solve subscription headache

The FTC rule is part of President Joe Biden’s efforts to crack down on “junk fees.” Vice President Kamala Harris, the Democratic nominee for the White House, talked up the proposed “click to cancel” rule in September.

The rule passed 3-2, with the FTC’s two Republican commissioners voting against it.

While some subscriptions can be canceled with a couple of clicks or a phone call, when companies make it challenging to cancel a subscription, customers can complete up with monthly charges long after they no longer desire or require a product or service.

Complaints about the hardship of dropping subscriptions have jumped in recent years. The FTC estimates it receives nearly 70 a day on average.

Trade groups representing advertisers, information publishers, retailers and other industries debate that a multistep cancellation procedure protects consumers or lets them receive advantage of a better deal. They declare the recent FTC rule places too many burdens on businesses and is unnecessary.

“We’re not sure why some companies would consider it a burden to be transparent with potential customers about prices and terms and to integrity requests to cancel when someone doesn’t desire to be your customer any more,” Teresa Murray, customer watchdog director at community profit Research throng, told USA TODAY. “Clearly many companies have relied on tricks and traps to get customers and keep them.”

Murray noted that some companies have already voluntarily complied with the recent FTC rule by providing upfront pricing and making it as straightforward to cancel as it was to sign up. 

“It’s notable that many companies welcome these recent rules because it leveled the playing field for companies who are trying to compete with others who may not disclose worth increases and other terms,” she said.

customer advocates on Wednesday accused the industry groups of “venue shopping” by filing the lawsuit in a conservative-leaning federal appeals court.

Twelve of the energetic judges were appointed by a Republican president, six of them by former President Donald Trump.

“The large businesses that deploy deceptive subscription models to trap customers are trying to sue their way out of this regulation to lower costs for millions of consumers,” Liz Zelnick, director of the economic safety and corporate power program for watchdog throng Accountable.US said in a statement. “We’ve seen this movie before, with large industry players venue shopping in a corporate-amiable jurisdiction regardless of the impact on Americans.”

The trade groups could not be immediately reached for comment.