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Court Nullifies 'Click-To-Cancel' Rule That Required Easy Methods of Cancellation (arstechnica.com)

(Wednesday July 09, 2025 @11:25AM (msmash) from the tough-luck dept.)


A federal appeals court [1]struck down a "click-to-cancel" rule that would have required companies to make cancelling services as easy as signing up. The Federal Trade Commission rule was scheduled to take effect on July 14 but was vacated by the US Court of Appeals for the 8th Circuit. The three-judge panel ruled unanimously that the Biden-era FTC failed to follow the full rulemaking process required under US law.

The FTC is required to conduct a preliminary regulatory analysis when a rule has an estimated annual economic effect of $100 million or more. The FTC initially estimated the rule would not reach that threshold, but an administrative law judge later found compliance costs would exceed $100 million. Despite this finding, the FTC did not conduct the required preliminary analysis.



[1] https://arstechnica.com/tech-policy/2025/07/us-court-cancels-ftc-rule-that-would-have-made-canceling-subscriptions-easier/



So basically... (Score:2)

by zurkeyon ( 1546501 )

"We know you are effectively stealing from people by making it impossible to cancel, but since its going to "Cost" you so much to stop stealing, we have decided that you can CONTINUE stealing." Tell me its corrupt from the TOP DOWN, without actually saying that ;-D

Re: (Score:1)

by Tablizer ( 95088 )

Why don't the hardship computations include the costs incurred by consumers from having difficulty cancelling?

"We're only making plans for Nigel"

Re: (Score:2)

by russotto ( 537200 )

> Why don't the hardship computations include the costs incurred by consumers from having difficulty cancelling?

I expect the analysis could have included those, but the problem is they didn't do the analysis at all.

Re: (Score:2)

by Calydor ( 739835 )

Because they're just The Poors. Who cares about The Poors? The people making the rules are The Rich, so they make all the rules favor The Rich so The Rich can keep being The Rich without risking any of The Poors sneaking into the club.

Re: (Score:2)

by chiefcrash ( 1315009 )

No, it's more like "the government has to follow its own rules". The Government can still implement this rule if they'd like. They just have to follow the correct process. FTA: The 8th Circuit ruling said the FTC's tactics, if not stopped, "could open the door to future manipulation of the rulemaking process. Furnishing an initially unrealistically low estimate of the economic impacts of a proposed rule would avail the Commission of a procedural shortcut that limits the need for additional public engagem

Big surprise (Score:2)

by VampireByte ( 447578 )

I suppose the "preliminary regulatory analysis" got lost with the Epstein list.

Not surprised (Score:2)

by kyoko21 ( 198413 )

Not surprised the FTC would side with businesses due to the fact an easy cancellation would mean easier means of losing revenue streams. It's like these businesses have adopted the same techniques of how gyms keep its memberships high due to their difficulty in cancellations. You know it's bad when there is a Friends episode about this topic.

Re: (Score:2)

by Retired Chemist ( 5039029 )

The FTC did not side with business, they just did not follow their own procedures. Never assume conspiracy when incompetence is a valid explanation.

Re: (Score:1)

by Tablizer ( 95088 )

When most oopsy's happen to side with biz, Hanlon gets tossed.

Re: (Score:2)

by rsilvergun ( 571051 )

They absolutely did follow their own procedures. The judge is altering the math the FTC did in order to invalidate this ruling. This is a judge doing whatever the fuck they want because they want to do it.

I bet he gets a nice RV and some great vacations out of it. Heck if he keeps this up he might get a supreme court seat.

Re: (Score:2)

by Tablizer ( 95088 )

I avoid pull-based auto-pay (PBAP) like the plague, after having been burnt gajillion times. The problem is that opting out of PBAP often has a fee associated with it.

Something needs to be done about that, but the current administration is up the greedy butt of business.

They ignore states rights when it comes to profit rights.

Re: (Score:2)

by Holi ( 250190 )

What are you talking about? The courts stopped this, not the FTC. I fail to see how this is a case of the FTC siding with businesses.

Though, with only the right wing's Ferguson, Holyoak and Meador on the commission, it was unlikely they would mount a competent defense for something they were against.

Re: (Score:2)

by rsilvergun ( 571051 )

The FTC side it with consumers right up until Donald Trump became president and replaced a few of them.

Elections have consequences.

Of course (Score:2)

by thegarbz ( 1787294 )

Following rules are only for republicans. Carefully dotting every I and crossing every T at every step of the rule making process. On the other hand Trump doesn't even cross the T in his signature on his executive orders.

Presidents only have power when kings... I mean republicans rule.

Just change your debit and credit card# (Score:2)

by FudRucker ( 866063 )

I done that before because Tracfone and AAA decided to enroll me in auto pay without my consent. So I went to the bank and asked for a new debit card with different numbers and it locked out everybody I make payments to so for those payments you want to continue you will have to give them the new card numbers and those you don't want to make payments to will find themselves locked out of your account, AAA keeps spamming me to update my info and I keep deleting their spam

Re: (Score:2)

by groobly ( 6155920 )

Not sure about the credit card, but for debit card, that is risky. The bank will still allow charges even after you close your account, and charge you fees if you don't pay the debit balance.

Re: (Score:2)

by The-Ixian ( 168184 )

I have heard of instances where the bank will give the updated card info to the party running the card if they had a previous recurring payment schedule set up.

Follow the rules (Score:2)

by PhrostyMcByte ( 589271 )

It's hard to tell the full context of things like this these days, but if legally required process was not followed, then I agree with the decision -- even though the FTC's regulation was a clearly good one for us.

If you stop following the law, it's a slippery slope until it all falls apart. One day it's passing bypassing laws on enacting regulation, the next day you might start deporting people without trial or something.

Regulatory capture (Score:2)

by Baloo Uriza ( 1582831 )

Republican voters, what did you expect was going to happen? You were warned voting for them would only fill the swamp and fuel antiamerican abuse by corporations, bigots and religion. History handed you plenty of evidence based on previous results.

When you're down and out, lift up your voice and shout, "I'M DOWN AND OUT"!