The 8th Circuit blocked the FTC's click-to-cancel rule, meant to simplify subscription cancellations, citing procedural deficiencies in the Commission's rulemaking process. The ruling prevents consumers from canceling subscriptions as easily as they can sign up. Neale Mahoney stated the ruling wastes consumers' time as they will face complex cancellation processes. Companies have increasingly adopted 'negative options', allowing consumers' silence to be interpreted as consent to continue charges, complicating the cancellation process even further. Current state and congressional efforts are ongoing to address these subscription traps.
The 8th Circuit ruled against the FTC's click-to-cancel rule due to procedural issues, blocking efforts to simplify subscription cancellations for consumers.
Neale Mahoney mentioned that the 8th Circuit's decision ultimately leads consumers to waste time navigating complex cancellation processes rather than allowing easy cancellations.
The court noted that while it does not endorse unfair practices, the procedural deficiencies in the rulemaking process were significant enough to invalidate the FTC's rule.
Businesses have become skilled in utilizing 'negative options', making it difficult for consumers to cancel subscriptions without actively opting out.
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