US 'click to cancel' rule blocked by appeals court
CALIFORNIA, UNITED STATES, JUL 8 – California's updated law requires clear consent for subscription auto-renewals and retention of consent records for three years to protect consumers from negative option programs.
- A federal appeals court based in St. Louis overturned the FTC's 'click to cancel' regulation, which was scheduled to be implemented on July 14, 2025.
- Industry groups and businesses sued the FTC, arguing the agency failed to follow proper procedures and conduct a preliminary cost-benefit analysis before issuing the rule.
- The rule, officially called the Negative Option Rule, aimed to require clear consent for auto-renewals and to make canceling subscriptions as easy as signing up.
- Judges found the FTC did not provide sufficient opportunity for public comment due to skipping a required preliminary regulatory analysis despite the rule's impact exceeding $100 million.
- The vacatur implies businesses need not comply with the rule for now, but failure to follow auto-renewal consent laws could still lead to enforcement and fines.
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'Click-to-cancel' rule to make canceling subscriptions easier blocked by court
A “click-to-cancel” rule, which would have required businesses to make it easy for consumers to cancel unwanted subscriptions and memberships, has been blocked by a court days before it was set to go into effect.
·Washington, United States
Read Full Article‘Click to cancel’ rule struck down by court just days before taking effect
(KRON) -- A United States appeals court has blocked a legal rule which would have required businesses to allow people to easily cancel memberships and subscriptions. The "Click to cancel" rule was set to take effect on July 14. However, according to the 8th U.S. Circuit Court of Appeals in St. Louis, the U.S. Federal Trade Commission failed to conduct a preliminary analysis of the costs and benefits of the rule. Driverless taxi company Cruise cu…
·San Francisco, United States
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Total News Sources71
Leaning Left15Leaning Right1Center40Last UpdatedBias Distribution71% Center
Bias Distribution
- 71% of the sources are Center
71% Center
L 27%
C 71%
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