Latest news with #consumerprotection
The Verge
13 hours ago
- Business
- The Verge
Democrats are desperately trying to revive the click-to-cancel rule
is a senior policy reporter at The Verge, covering the intersection of Silicon Valley and Capitol Hill. She spent 5 years covering tech policy at CNBC, writing about antitrust, privacy, and content moderation reform. Democratic lawmakers are taking multiple routes to try to revive the Federal Trade Commission's 'click-to-cancel' rule after an appeals court blocked it on procedural grounds right before it was set to take effect. Democrats already introduced legislation earlier this month to codify the rule, which would require subscription services to let customers cancel as easily as they signed up, through congressional vote. But now a group of lawmakers are also pressuring Republican FTC Chair Andrew Ferguson to reinstate it. Seven Democrats led by Sen. Amy Klobuchar (D-MN) appealed to the chair in a letter shared exclusively with The Verge, urging him to revise the rule so that it can take effect. 'Putting this commonsense consumer protection in place is vital to foster competition, innovation, and fairness,' wrote the lawmakers, including Sens. Chris Van Hollen (D-MD) and Ruben Gallego (D-AZ), who are also behind the click-to-cancel legislation. The click-to-cancel or negative option rule would have barred companies from throwing up roadblocks to ending gym memberships, streaming video subscriptions, and other services — eliminating extra steps of talking to a live agent, for example, to cancel a subscription purchased with a click of a button. But a federal appeals court ruled this month that the rule had to be thrown out because the FTC, under former Democratic Chair Lina Khan, had deprived companies and trade groups that petitioned against the rule a fair chance to talk the agency out of it. It's not yet clear whether either path toward restoring it will be fruitful, given that passing bills in a deeply divided legislature is a tall task, and Ferguson alongside Republican Commissioner Melissa Holyoak voted against the rule the first time around. But Democrats' insistence on reviving it shows they believe it to be a politically winning consumer protection issue, a position some Republicans might also come around to. The letter's Democratic signatories argue comments submitted on click-to-cancel show overwhelming support for the measure. 'A review of more than 16,000 comments from the public made clear what should be obvious: Businesses should not be allowed to trap consumers in costly subscriptions by making it difficult to unsubscribe—costing consumers valuable time and money while stifling competition,' the lawmakers wrote. 'We urge the FTC to cure any perceived procedural defect and reissue the rule as quickly as possible to ensure consumers are protected from predatory subscription traps.' 'Businesses should not be allowed to trap consumers in costly subscriptions by making it difficult to unsubscribe' There's some reason for hope that the FTC could get the rule back on track, even if it might look different than last time around. In her dissenting statement on the original rule, Holyoak wrote that she might have voted differently '[h]ad political leadership at the Commission taken more time to engage with other Commissioners to refine and improve the Rule.' But that path forward still looks murky, especially in light of President Donald Trump's upheaval of the FTC, an issue that's still working its way through the courts. Trump broke Supreme Court precedent to fire the two Democratic commissioners at the agency earlier this year, removing what could be key votes for the click-to-cancel rule. Last week, Democratic Commissioner Rebecca Kelly Slaughter, who voted for the rule the first time, returned to work at the FTC after a federal judge ruled that Trump's attempt to fire her was unlawful. Smiling outside the FTC building on the day of her ephemeral return, Slaughter wrote on X that her first priority would be 'calling a vote on restoring the Click to Cancel Rule.' But her return was short-lived, after an appeals court this week granted an emergency stay keeping her from agency work while the case plays out. (Trump also attempted to fire Democratic Commissioner Alvaro Bedoya, who later resigned his position to take another role while the case played out in court. A federal judge dismissed his claims without prejudice). While pushing for Ferguson to reinstate the rule at the FTC, Klobuchar is also supporting Van Hollen's Consumer Online Payment Transparency and Integrity (Consumer OPT-IN) Act and Gallego's Click to Cancel Consumer Protection Act, which were introduced after the appeals court blocked the FTC rule. But Klobuchar and other Democrats aren't looking at it as an either-or proposition. 'The FTC should always be looking out for consumers and they did the right thing when they issued this rule,' Klobuchar said in a statement. 'Consumers deserve protection from subscription traps and it is time for the FTC to reinstate the rule to do just that.'
Yahoo
15 hours ago
- Business
- Yahoo
Puerto Rico's government sues private power company as chronic outages damage appliances
SAN JUAN, Puerto Rico (AP) — Puerto Rico's government filed a lawsuit Tuesday against a private power company, claiming it is responsible for damages to customers' appliances caused by chronic power outages in the U.S. territory. The civil lawsuit by the consumer affairs department says the Luma company, which oversees power transmission and distribution in Puerto Rico, was 'negligent' and is responsible for damages caused to consumer appliances by outages and power fluctuations. It said the department has the authority to take cases to court to protect those affected by the company's 'inefficiency and lack of adequate service.' The action was filed against the company as a whole since the law exempts Luma's employees and contractors from claims filed by customers under an immunity granted in 2021 by Puerto Rico's Energy Bureau. The suit cited a recent Luma statement at a public hearing that the company has rejected 1,828 claims. 'It's time for Luma to be fully accountable to Puerto Rican consumers,' it said. Luma said in a brief statement that it would treat the lawsuit with the seriousness and responsibility it deserves. 'Our commitment is to continue working for the benefit of our customers, despite the significant challenges we face in operating a fragile and deteriorating electrical system, which for years has lacked the necessary maintenance and investment,' it said. The outages have damaged thousands of appliances ranging from air conditioners to refrigerators on the island of 3.2 million people with a 40% poverty rate. The lawsuit comes months after Puerto Rico's governor promised to cancel Luma's contract, warning it would be a long and complex process. Anger against Luma has been growing ever since it signed a contract with Puerto Rico's government in 2020. Outages remain common after Hurricane Maria razed Puerto Rico's electric grid when it hit the island as a powerful Category 4 storm in September 2017. But the grid was already frail following a lack of investment and maintenance for decades by Puerto Rico's Electric Power Authority, which is struggling to restructure $9 billion in debt. Two island-wide blackouts hit the island in recent months, including on New Year's Eve and during Easter Week. The Associated Press
The Independent
15 hours ago
- Business
- The Independent
Puerto Rico's government sues private power company as chronic outages damage appliances
Puerto Rico's government filed a lawsuit Tuesday against a private power company, claiming it is responsible for damages to customers' appliances caused by chronic power outages in the U.S. territory. The civil lawsuit by the consumer affairs department says the Luma company, which oversees power transmission and distribution in Puerto Rico, was 'negligent' and is responsible for damages caused to consumer appliances by outages and power fluctuations. It said the department has the authority to take cases to court to protect those affected by the company's 'inefficiency and lack of adequate service.' The action was filed against the company as a whole since the law exempts Luma's employees and contractors from claims filed by customers under an immunity granted in 2021 by Puerto Rico's Energy Bureau. The suit cited a recent Luma statement at a public hearing that the company has rejected 1,828 claims. 'It's time for Luma to be fully accountable to Puerto Rican consumers,' it said. Luma said in a brief statement that it would treat the lawsuit with the seriousness and responsibility it deserves. 'Our commitment is to continue working for the benefit of our customers, despite the significant challenges we face in operating a fragile and deteriorating electrical system, which for years has lacked the necessary maintenance and investment,' it said. The outages have damaged thousands of appliances ranging from air conditioners to refrigerators on the island of 3.2 million people with a 40% poverty rate. The lawsuit comes months after Puerto Rico's governor promised to cancel Luma's contract, warning it would be a long and complex process. Anger against Luma has been growing ever since it signed a contract with Puerto Rico's government in 2020. Outages remain common after Hurricane Maria razed Puerto Rico's electric grid when it hit the island as a powerful Category 4 storm in September 2017. But the grid was already frail following a lack of investment and maintenance for decades by Puerto Rico's Electric Power Authority, which is struggling to restructure $9 billion in debt. Two island-wide blackouts hit the island in recent months, including on New Year's Eve and during Easter Week.
Associated Press
15 hours ago
- Business
- Associated Press
Puerto Rico's government sues private power company as chronic outages damage appliances
SAN JUAN, Puerto Rico (AP) — Puerto Rico's government filed a lawsuit Tuesday against a private power company, claiming it is responsible for damages to customers' appliances caused by chronic power outages in the U.S. territory. The civil lawsuit by the consumer affairs department says the Luma company, which oversees power transmission and distribution in Puerto Rico, was 'negligent' and is responsible for damages caused to consumer appliances by outages and power fluctuations. It said the department has the authority to take cases to court to protect those affected by the company's 'inefficiency and lack of adequate service.' The action was filed against the company as a whole since the law exempts Luma's employees and contractors from claims filed by customers under an immunity granted in 2021 by Puerto Rico's Energy Bureau. The suit cited a recent Luma statement at a public hearing that the company has rejected 1,828 claims. 'It's time for Luma to be fully accountable to Puerto Rican consumers,' it said. Luma said in a brief statement that it would treat the lawsuit with the seriousness and responsibility it deserves. 'Our commitment is to continue working for the benefit of our customers, despite the significant challenges we face in operating a fragile and deteriorating electrical system, which for years has lacked the necessary maintenance and investment,' it said. The outages have damaged thousands of appliances ranging from air conditioners to refrigerators on the island of 3.2 million people with a 40% poverty rate. The lawsuit comes months after Puerto Rico's governor promised to cancel Luma's contract, warning it would be a long and complex process. Anger against Luma has been growing ever since it signed a contract with Puerto Rico's government in 2020. Outages remain common after Hurricane Maria razed Puerto Rico's electric grid when it hit the island as a powerful Category 4 storm in September 2017. But the grid was already frail following a lack of investment and maintenance for decades by Puerto Rico's Electric Power Authority, which is struggling to restructure $9 billion in debt. Two island-wide blackouts hit the island in recent months, including on New Year's Eve and during Easter Week.
The Verge
18 hours ago
- Business
- The Verge
A Democratic commissioner's return to a top consumer protection agency was short-lived.
Posted Jul 22, 2025 at 3:05 PM UTC A Democratic commissioner's return to a top consumer protection agency was short-lived. A federal appeals court granted the Trump administration an emergency stay blocking Federal Trade Commissioner Rebecca Kelly Slaughter from returning to work. The lower court had called President Donald Trump's decision to fire her 'unlawful,' and reinstated her. Slaughter says the public will remain in the dark on FTC decisions in her absence. 'Right now, the FTC isn't doing the job it should be to protect consumers and competition, and Americans deserve to know why.' Slaughter statement on the DC Circuit stay [ Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates. Lauren Feiner Posts from this author will be added to your daily email digest and your homepage feed. See All by Lauren Feiner Posts from this topic will be added to your daily email digest and your homepage feed. See All Antitrust Posts from this topic will be added to your daily email digest and your homepage feed. See All News Posts from this topic will be added to your daily email digest and your homepage feed. See All Policy Posts from this topic will be added to your daily email digest and your homepage feed. See All Politics Posts from this topic will be added to your daily email digest and your homepage feed. See All Regulation
