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The Register

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Image Credit: The Register

Court cancels FTC click-to-cancel rule on a technicality

  • 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.

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