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Ad Industry Wants to Cancel Click-To-Cancel

Well, that didn't take long.

The Interactive Advertising Bureau and two other industry groups are suing the American trade regulator to block its new "click-to-cancel" rule.

That rule will require companies to make canceling subscriptions as easy as signing up is.

Netflix & sue

The IAB represents 700 members, like Netflix, Amazon, Google, and Meta, and it’s joining forces with the Electronic Security Association and NCTA–Internet and Television Association, whose members include Disney, Comcast, and Warner Bros.

  • The FTC argues simplifying cancellations will benefit consumers. But industry groups say it could harm businesses reliant on recurring payments.

  • Pay TV providers, which often require users to call to cancel, could be especially impacted, as the rule would demand a digital cancellation option.

Pausing the cancel button

The lawsuit was filed just days after the FTC published the final version of the rule, which is set to take effect in about six months.

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Google Calls Time of Death on Call Ads

Google’s “click-to-call“ ads are also getting canceled.

Google is dialing down on call ads as it prepares to phase them out next year, moving those campaigns to the “responsive search ads” format.

This shift means advertisers will need to make some changes, like adding a landing page and a business name at the campaign or account level.

What’s changing

Google says that starting sometime next year, creating new call ads will no longer be an option.

And any existing call ads without a final URL added will not be migrated to responsive search ads.

A Google spokesperson said that while there’s no specific kill date yet, the transition is likely to happen early next year. Advertisers should get an alert ahead of the change.

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