The Federal Trade Commission's (FTC) negative option rule,
better known as the "Click-to-Cancel" rule, which was set
to go into effect July 14, 2025, has been vacated in its entirely
by the Eighth Circuit in Custom Communications,
Inc. v. FTC, Case No. 24-3137 (8th Cir. July
8, 2025). The court held that the FTC flouted Section 22 of the FTC
Act by skipping a preliminary regulatory analysis after
learning the rule would impose more than $100 million in annual
costs. Because the FTC's procedural misstep was prejudicial,
the court applied 15 U.S.C. § 15a(e)(3) and APA §
706(2)(D) to "set aside the rule."
On June 27, 2025, just 11 days earlier, the Supreme Court
sharply restricted federal district courts' ability to issue
nationwide, i.e., universal, injunctions, holding that
such relief "likely exceeds" the equitable powers
conferred by the Judiciary Act of 1789. Trump v. Casa,
Inc. (Case No. 24A885, June 27, 2025). That decision will not
impact the Eighth
