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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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WGRZ broke the news in on Tuesday, July 8, 2025.
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