Click-to-Cancel Rule Blocked, Making Subscription Cancellations Harder
down on consumer-related hassles. Unfortunately, the rule hit a roadblock when the U.S. Court of Appeals for the Eighth Circuit determined that the FTC failed to provide a preliminary regulatory analysis for rules with an annual impact on the U.S. economy exceeding $100 million.
The court ultimately vacated the rule, citing procedural errors in the rulemaking process. While the court emphasized that it does not condone deceptive marketing practices, they found that the FTC’s missteps were significant enough to warrant setting aside the rule.
As a result, the FTC’s plans for the “click-to-cancel” rule have been halted for now. However, the agency continues to move forward with other consumer protection initiatives, including an upcoming trial involving Amazon’s Prime program. The trial, stemming from a lawsuit accusing Amazon of enrolling consumers in Prime without their consent, is expected to proceed next year.
So, while the “click-to-cancel” rule may be on hold, the FTC remains committed to safeguarding consumer rights and holding businesses accountable for their practices. Stay tuned for further updates on this ongoing issue.
