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US 'click to cancel' rule blocked by appeals court
UNITED STATES, JUL 8 – The U.S. Court of Appeals for the Eighth Circuit invalidated the FTC’s rule for failing to conduct a required economic impact analysis exceeding $100 million, blocking consumer subscription protections.
- A federal appeals court based in St. Louis overturned the FTC's 'click to cancel' regulation, which was scheduled to be implemented on July 14, 2025.
- Industry groups and businesses sued the FTC, arguing the agency failed to follow proper procedures and conduct a preliminary cost-benefit analysis before issuing the rule.
- The rule, officially called the Negative Option Rule, aimed to require clear consent for auto-renewals and to make canceling subscriptions as easy as signing up.
- Judges found the FTC did not provide sufficient opportunity for public comment due to skipping a required preliminary regulatory analysis despite the rule's impact exceeding $100 million.
- The vacatur implies businesses need not comply with the rule for now, but failure to follow auto-renewal consent laws could still lead to enforcement and fines.
178 Articles
178 Articles
Click-to-cancel is canceled — and only a glimmer of hope remains for its revival
The 8th Circuit blocked the FTC's rule that would've made it easier to cancel subscriptions.SolStock/Getty ImagesThe 8th Circuit blocked the FTC's "click-to-cancel" rule over claims of procedural issues.The rule would have made it as easy for a consumer to cancel a subscription as it was to sign up.While the provision is blocked, there are ongoing state and congressional efforts to ease subscription traps.Click-to-cancel is canceled.Americans we…
Circuit Court Voids FTC's Rules Making It Easier to Cancel Subscriptions, But Mainers Will Still Reap the Benefits Under New, Bipartisan Law
Earlier this week, the 8th Circuit Court of Appeals voided the Federal Trade Commission’s (FTC) new rule making it easier for customers to cancel unwanted subscriptions. Mainers, however, can still expect to see some of the promised benefits under a new law unanimously approved in both chambers of the Legislature and signed by Gov. Janet [...] The post Circuit Court Voids FTC’s Rules Making It Easier to Cancel Subscriptions, But Mainers Will Sti…
Commentary: How Big Business killed the 'click-to-cancel' FTC rule, which would have saved consumers billions
The FTC's 'click to cancel' rule would have wiped out a practice that allowed some businesses to scam their customers. That's why businesses got it killed
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