A panel of appeals court judges has canceled the FTC's click-to-cancel rule on a technicality just before its enforcement date.
The rule aimed to make subscription cancellations easier for consumers by requiring companies to offer one-click cancellation options, but businesses raised complaints.
The judges pointed out procedural deficiencies in the rulemaking process, particularly the lack of a preliminary regulatory analysis, leading to the rule's cancellation.
While recognizing the need for consumer protection, the judges deemed the FTC's errors as reason enough to vacate the rule; dissenting commissioner also criticized the rule's legal authority and breadth.