The Federal Trade Commission (FTC) has been accused of exceeding its regulatory authority by various industry groups, including The National Cable & Telecommunications Association, after proposing changes to the “negative option rule”. This rule governs whether a consumer has accepted a company’s offer of products or services.
An informal hearing was held where these groups voiced their concerns to the agency. It was alleged that the FTC went ahead with its proposal without proper consideration of whether there were necessity, and failed to offer these organizations an opportunity to cross-examine agency personnel and submit discovery requests for ex parte communications.
The industry groups maintained that the agency has not succeeded in demonstrating the need for the amendments to this consumer protection rule.
The full details of these criticisms and the response of FTC can be read in this report by National Law Journal.