By John Q. Hosedrinker 
The implementation of the “click-to-cancel” rule, designed to simplify subscription cancellations, has been halted by a federal appeals court just days before its effective date. The Federal Trade Commission’s (FTC) rule, which would require businesses to obtain consent for recurring charges and allow for easy cancellation, was blocked due to a procedural error related to a preliminary regulatory analysis. Despite the FTC’s intentions to protect consumers and the Biden administration’s support, the court vacated the rule, citing deficiencies in the rulemaking process. Meanwhile, the FTC is proceeding with its case against Amazon’s Prime program regarding alleged enrollment and cancellation issues.
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A “click-to-cancel” rule, intended to make cancelling subscriptions easier, has been blocked. The very idea, a straightforward measure to empower consumers and simplify the cancellation of unwanted subscriptions and memberships, was seemingly on the cusp of becoming a reality. The Federal Trade Commission (FTC) had proposed changes, mandating that businesses obtain explicit consent before charging for memberships, auto-renewals, and offers tied to free trials. This was a good thing. The FTC also planned to require clear disclosure about the end of free trials and to allow cancellations to be as easy as the initial sign-up. It was all set to take effect, scheduled to become the law of the land.
Then, a major setback: The U.S. Court of Appeals for the Eighth Circuit stepped in, citing a procedural error by the FTC. The court claimed the FTC failed to conduct a preliminary regulatory analysis, a requirement for rules estimated to have an economic impact exceeding $100 million. It feels like a deliberate hurdle, a frustrating obstacle placed in the path of progress.
It really does seem like our government is designed to benefit the corporations. It often feels like consumers are treated as an afterthought.
It’s always seemed to be an uphill battle for regular people against the influence of powerful corporations. The court’s ruling means that businesses can continue to make it difficult to cancel subscriptions. It’s easy to be cynical, wondering if the “donations” given to get a good court ruling, played a role. It all makes things so much harder than they need to be.
And who benefits from all this complexity? The businesses, of course. The court’s decision allows companies to continue their practices of making it difficult, if not nearly impossible, to cancel subscriptions. You can almost picture them rubbing their hands with glee.
It’s clear that the deck is stacked against consumers. And, it is not fair. The lack of an easy cancel feature is a tool in the hands of businesses to extract more money. It’s a tactic, and the fact that it generates over $100 million in economic impact speaks volumes.
There are ways to fight back, to be sure. Using credit card protections is a good idea. Lean on chargebacks when companies refuse to let you cancel. Virtual cards are another weapon. It’s a small victory, but a victory nonetheless.
The real problem lies with a system that favors corporations over consumers. The FTC must conduct the preliminary analysis and try again.
The need to have an easy way to cancel a subscription, and the same one used to sign up in the first place is very clear. The frustration is understandable. If the FTC didn’t do their due diligence, they should have.
The entire situation is just maddening. But what is the alternative? Piracy? It’s so frustrating to deal with companies that make it easy to subscribe and then a nightmare to cancel.
And there it is: The underlying problem of a system seemingly designed to frustrate, impede, and ultimately, protect the entities that profit from these practices. It’s hard not to feel that this rule was set up to fail, that its potential for consumer protection was overshadowed by an unwillingness, or inability, to follow the proper procedures. If you can sign up with a click, you should be able to cancel with one too.
Companies are stealing more than $100 million each year with misleading trial periods and uncancelable subscriptions. This highlights a systemic problem where businesses prioritize profits over consumer convenience and transparency.