Court Blocks “Click-to-Cancel” Rule, Protecting Subscription Businesses
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.
John Q. Hosedrinker