FTC Cites Fatal Flaw For Killing Click-To-Cancel Rule At The Last Minute

The US Court of Appeals for the Eighth Circuit has ruled to vacate the Federal Trade Commission's "click-to-cancel rule" just days before it was slated to take effect on July 14, 2025.

For most of us, it's often the case that we find it easier to subscribe to a service than to cancel it. Apparently, this recurring issue has generated several consumer complaints, which led the FTC to propose a "click-to-cancel rule" to end recurring subscriptions and memberships. With this rule, the Commission sought to address "negative option marketing," which simply means that your failure to decline an offer would be considered a "yes" or a "nod" that you agree to be charged for the goods or services. Last October, the FTC finalized this rule. While it initially set a period of 180 days for it to become operative, it later extended it to July 14, 2025.

However ...