Eighth Circuit Blocks Click-To-Cancel Rule

On July 8, the U.S. Court of Appeals for the Eighth Circuit blocked the "click-to-cancel" rule, which would have required companies to make it as easy to cancel subscriptions as it was to sign up, including obtaining consent for auto-renewals and free trials resulting in paid memberships. The court concluded that the FTC erred by failing to make a preliminary regulatory analysis of the costs and benefits of the rule, an analysis that is required for any rule that impacts the U.S. economy by more than $100 million.

The Biden-era FTC passed the rule under former Democratic Chair Lina Khan as part of an initiative to crack down on consumer hassles, "bait-and-switch" tactics, hidden costs, and "junk fees." When unveiling the now-abandoned rule, Khan said that too many "businesses make people jump through endless hoops just to cancel a subscription. The FTC's rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a