The Eighth Circuit Court of Appeals has vacated the FTC's "click to cancel" rule, which aimed to simplify subscription cancellations. Businesses and industry associations raised immediate concerns about the rule's implications. The judges emphasized that while they disapprove of deceptive business practices, the procedural shortcomings of the FTC's rulemaking process were critical in their decision. The court noted the failure to conduct a preliminary regulatory analysis regarding the rule's economic impact was a significant oversight, nullifying the regulation's enforcement.
"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."
"The rule, which the Federal Trade Commission passed last year in a 3-2 vote, tackles various tricks that companies use to make it harder to unsubscribe from services, like dark patterns, misrepresentations of the cancellation process."
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