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US appeals court blocks FTC’s ‘click-to-cancel’ rule for subscriptions

In Brief A U.S. appeals court has blocked the Federal Trade Commission’s “click-to-cancel” rule that would have required companies to make it as easy to cancel a subscription as it was to sign up. The rule was set to take effect on July 14. Reuters reports that the 8th U.S. Circuit Court of Appeals in St. Louis said on Wednesday that the FTC, which passed the rule under former Democratic Chair Lina Khan, had failed to conduct a preliminary analysis of the costs and benefits of the rule. The r

FTC’s click-to-cancel rule has been struck down by federal judges at the eleventh hour

In 2024, the FTC was set to implement the "click to cancel" rule, which would have placed requirements on companies to be forthright about the terms and conditions and exit options for their subscriptions. Since that time, the agency has become a less independent part of the executive branch and in May, it delayed enforcing some parts of this rule to July 14. Today, the entire plan appears to be dead in the water after judges in the US Eighth Circuit Court of Appeals decided to vacate the rule.