The federal appeals court has invalidated the Federal Trade Commission's click-to-cancel rule, which aimed to simplify subscription cancellations. The rule mandated that businesses allow consumers to cancel subscriptions as easily as signing up. Industry groups contested the regulation, arguing it could lead to excessive government control. The Eighth Circuit's ruling cited procedural deficiencies in how the FTC implemented the rule, stating that stakeholders were not sufficiently given the opportunity to provide input during the process. Although the court noted that the FTC did not act in bad faith, the errors were deemed significant enough to void the entire rule.
The court found that the FTC under former Democratic Chair Lina Khan erred so gravely in its roll-out of the rule that it needs to be thrown out altogether.
While we certainly do not endorse the use of unfair and deceptive practices in negative option marketing, the procedural deficiencies of the Commission's rulemaking process are fatal here.
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