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ARTICLE · 15 JULY 2025

Eighth Circuit Vacates FTC Negative Option Rule: What's Next For Automatic Renewal Compliance?

Taft, Stettinius & Hollister LLP
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The Eighth Circuit's recent decision to vacate the Federal Trade Commission's (FTC) new Negative Option Rule (commonly referred to as the "Click-to-Cancel" Rule)...

United StatesFinance and Banking
Nicole M. Meisner
Nicole M. Meisner
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The Eighth Circuit's recent decision to vacate the Federal Trade Commission's (FTC) new Negative Option Rule (commonly referred to as the "Click-to-Cancel" Rule) has created significant uncertainty for businesses in the payments and subscription industries. Many companies were preparing to comply with the now-vacated rule's broad requirements, only to see them now nullified just before they were set to take effect. And while the court's decision halts, for now, the FTC's efforts in implementing the new Rule, it is important for businesses to recognize that the fundamental compliance obligations for negative option programs remain firmly in place under existing federal and state laws.

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