A federal appeals court has nullified the Federal Trade
Commission's amendments to its Negative Option Rule intended to
make it easier for people to cancel subscriptions.
Custom Communications, the U.S. Chamber of Commerce, and other
groups filed suit challenging the amendments to the rule,
contending that the FTC did not follow proper procedures in
enacting them.
A three-judge panel from the U.S. Court of Appeals for the
Eighth Circuit agreed and found that the "Commission's
rulemaking process was procedurally insufficient and Petitioners
demonstrated prejudicial error.
On October 16, 2024, the FTC issued its final amendments to the
Negative Option Rule, which applied to all negative option programs
and included a "click to cancel" provision intended to
make it easier for consumers to cancel their enrollment in order to
halt continued charges.
