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Republicans on the Federal Trade Commission have "ensured that hardworking people will keep getting stuck with subscriptions they don't want or can't afford," said one consumer advocate.
Consumer advocates said Tuesday that the Trump administration is to blame for an appeals court decision that effectively killed the Federal Trade Commission's click-to-cancel rule, a Biden-era effort to stop companies from trapping consumers in subscriptions with onerous cancellation terms.
The U.S. Court of Appeals for the 8th Circuit vacated the rule entirely on procedural grounds on Tuesday, siding with the U.S. Chamber of Commerce and other corporate interests that claimed the FTC's process in crafting and finalizing the rule did not give industry sufficient "opportunity to assess" the agency's "cost-benefit analysis of alternatives."
"This meritless dismissal is a win for monopolists and billionaires," said the senior legal counsel for the American Economic Liberties Project.
The U.S. Federal Trade Commission on Thursday dismissed a price discrimination lawsuit against the drink and food giant PepsiCo, a move that former FTC Chair Lina Khan, who served under former President Joe Biden, called "disturbing behavior."
The lawsuit, filed only a few days before U.S. President Donald Trump returned to the White House, accused PepsiCo of providing a big box retailer customer, Walmart, with pricing advantages, while increasing prices for competing customers and retailers.
"The new tariffs have created a cloud of uncertainty that gives companies cover to raise prices on all goods," the lawmakers wrote.
Dozens of congressional Democrats are urging the country's top antitrust enforcer to probe the extent to which big companies are taking advantage of Trump administration tariffs, or confusion around the tariffs, to boost prices, and to take action against any that are inappropriately raising prices in excess of cost increases, also known as price gouging.
In a letter sent last week, 36 Democrats asked Republican Federal Trade Commission (FTC) Chair Andrew Ferguson to answer questions about his decision to effectively shut down an inquiry into so-called "surveillance pricing" practices—a move that, according to the outlet The Lever, has emboldened consultants who peddle surveillance pricing tools to advise companies on how to hike prices in response to tariffs, or even just the threat of tariffs.