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11h ago

Eighth Circuit Vacates FTC ‘Click-to-Cancel’ Rule Days Before Implementation

Failure by the FTC to perform a required cost-benefit analysis under the FTC Act has led agency officials to consider fresh rulemaking, with state enforcers beginning their own review.

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United States Federal Trade Commission logo and U.S. flag are seen in this illustration created on April 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • The Eighth Circuit vacated the click-to-cancel rule on July 8, finding the FTC failed to conduct a preliminary economic study as required by law.
  • Set to take effect on July 14, the rule would have covered all negative option marketing across websites, apps and free trials.
  • It would have mandated that cancellation remains as simple as sign-up, banning forced chatbot detours or lengthy agent interactions.
  • The U.S. Chamber of Commerce and a trade association for cable and internet providers challenged the measure as beyond the FTC’s rulemaking authority.
  • New York Attorney General Letitia James and other state enforcers are reviewing the decision and weighing consumer protection strategies.