FTC's "Click-to-Cancel" Rule Vacated By Eighth Circuit

On July 8, 2025, the US Court of Appeals for the Eighth Circuit struck down the Federal Trade Commission's (FTC) amended Negative Option Rule. When the final Rule was issued in October 2024, we explained that it contained four core requirements for businesses offering goods or services on a recurring basis:

• Misrepresentations - a broad prohibition on misrepresentations about "any material fact" regarding the goods or services being offered, not just the negative option component of the product or service;
• Disclosures - a requirement to clearly and conspicuously disclose all material terms of sale before capturing consumers' billing information;
• Consent - a requirement to obtain consumers' express informed consent (g., non-pre-selected checkbox, e-signature, or similar) to the negative option or subscription feature separately from the rest of the transaction; and