Overview
- The Eighth Circuit vacated the FTC’s click-to-cancel rule days before its planned enforcement after finding the agency skipped a preliminary analysis for rules exceeding $100 million in annual impact.
- With the vacatur, companies can still require customers to cancel subscriptions by phone despite allowing online sign-ups and payments, and there is no federal mandate for clear trial end disclosures.
- Consumer experts advise setting calendar reminders, reviewing account statements frequently and using apps like Rocket Money or Trim to monitor and cancel unwanted subscriptions.
- The FTC is moving forward with its trial against Amazon, alleging the retailer enrolled consumers in Prime without clear consent and imposed obstacles to cancellation.
- California’s new click-to-cancel law took effect July 1, offering residents state-level protections for simpler online subscription terminations.