The Eighth Circuit ruled against the FTC's 'Click to Cancel' rule, intended to make subscription cancellations as easy as sign-up processes. The goal was to eliminate complicated cancellation procedures that often involved multiple steps or misleading options. Critics argue that the decision was based on procedural issues rather than the substance of consumer protections. Advocates hope the FTC will reconsider the rule to better protect consumers from complex cancellation processes associated with subscriptions.
"The stated goal was that they wanted to make it as easy for you to cancel a subscription as it is to sign up," says John Breyault, vice president of public policy, telecommunications, and fraud at the National Consumers League.
"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," reads the appeal court's published opinion.
John Davisson, director of litigation at the Electronic Privacy Information Center, sees this decision as "very poorly reasoned" and hopes the current FTC tries to revisit the rule to protect consumers better.
"I think everyone understands why the subscription traps are bad. No one should ever be forced to go through a labyrinth to cancel a service they no longer want."
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