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ruet

(10,143 posts)
Tue Jul 8, 2025, 09:56 PM Jul 8

Court nullifies "click-to-cancel" rule that required easy methods of cancellation

Source: Ars Technica

A federal appeals court today struck down a "click-to-cancel" rule that would have required companies to make cancelling services as easy as signing up. The Federal Trade Commission rule was scheduled to take effect on July 14 but was vacated by the US Court of Appeals for the 8th Circuit.

A three-judge panel ruled unanimously that the Biden-era FTC, then led by Chair Lina Khan, failed to follow the full rulemaking process required under US law. "While we certainly do not endorse the use of unfair and deceptive practices in negative option marketing, the procedural deficiencies of the Commission's rulemaking process are fatal here," the ruling said.

Indicating their sympathy with the FTC's motivations, judges wrote that many Americans "have found themselves unwittingly enrolled in recurring subscription plans, continuing to pay for unwanted products or services because they neglected to cancel their subscriptions." Last year, the FTC updated its 1973 Negative Option Rule by "adding provisions that bar sellers from misrepresenting material facts and require disclosure of material terms, express consumer consent, and a simple cancellation mechanism," the ruling said.

The FTC is required to conduct a preliminary regulatory analysis when a rule has an estimated annual economic effect of $100 million or more. The FTC estimated in a Notice of Proposed Rulemaking (NPRM) that the rule would not have a $100 million effect.

Read more: https://arstechnica.com/tech-policy/2025/07/us-court-cancels-ftc-rule-that-would-have-made-canceling-subscriptions-easier/

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ck4829

(37,031 posts)
1. "While we certainly do not endorse the use of unfair and deceptive practices", but you do. Yes, you do!
Tue Jul 8, 2025, 10:01 PM
Jul 8

Marie Marie

(10,375 posts)
4. Damn it! Can we have ANY common sense laws that benefit common people?
Tue Jul 8, 2025, 11:12 PM
Jul 8

This should be a no brainer.

DENVERPOPS

(13,003 posts)
6. Why the hell don't the Republicans just go ahead
Tue Jul 8, 2025, 11:21 PM
Jul 8

And change this country from the United States of America.....to the Corporations of America, or the Corporate Tyranny of America/????????????/
They passed the "Citizens United Act" in 2010, which put them on the doorstep to pull it off............

angrychair

(10,920 posts)
7. Justice no more
Wed Jul 9, 2025, 01:36 AM
Jul 9

We no longer have a court system or at least a court system that helps anyone but rich assholes and corporations.

I'm truly sick of everything.

Yo_Mama_Been_Loggin

(126,535 posts)
8. Yet many of these companies keep you as subscribers after your trial date is up when you try to cancel
Wed Jul 9, 2025, 12:29 PM
Jul 9
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