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Comment by hamilyon2

5 days ago

I am not getting it. The rule makes competition in markets higher. Because dollars flow to best offers faster. And thus improve economic situation, not only in markets affected by rule, but also on all other markets, in case customer wants to take his money elsewhere.

And on international scale, because more competitive companies presumably out-compete foreign competitors.

So, FTC needs some permission and review to make national economy money?

4 comments

hamilyon2

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sokoloff  5 days ago

The FTC was not given unlimited rule-making power by Congress, and has to live within the power granted to them.

Issuing an NPRM (Notice of Proposed Rulemaking) and conducting a regulatory analysis for certain rules are examples of such limits. The FTC did not follow the second (as was required) in this case.

Whether I happen to agree with the change they enacted (I do) doesn’t change the fact that I want my government agencies to follow the rules laid out for them. Because as surely as the sun rises in the east, sooner or later they’ll propose a rule I don’t agree with and I want there to be a lawful process and framework in place then, and therefore also now.

hiAndrewQuinn  5 days ago

>The rule makes competition in markets higher. Because dollars flow to best offers faster.

That's an insufficiently nuanced view of how competition works. Imagine two companies offering otherwise identical services, at identical price points, except that one company starts to offer click to cancel and the other does not. What happens next?

It's possible the other company implements it too. But it's also possible the other company lowers its prices, trading profit margin for trade stickiness. Enforcing click to cancel wouldn't give the other company the option to respond in the way it sees best.

  • hamilyon2  5 days ago

    In general the better experience will command higher price, right. That is true, and by forcing same lowest level on everyone we are constructing artificial floor on how bad an experience can be.

    Or at least ensuring that bad experience is so profitable that the competitor is ready to even pay the fee for violations.

    Illegal markets operate in this territory. No consumer protection there, sorry.

    I started to understand the question more, thank you for your comment