A federal appeals court blocked the Federal Trade Commission's (FTC) click-to-cancel rule aimed at simplifying subscription cancellations. The U.S. Court of Appeals sided with corporate lobbyists who claimed the FTC did not provide enough opportunity for industry input during the rule's formulation. Consumer advocates attributed the decision to the Trump administration's influence, asserting that subscription complaints surged dramatically. Despite strong public support for the rule, the FTC's implementation faced delays under the current administration due to concerns from industry stakeholders.
Consumer advocates criticized the appeals court decision to block the FTC's rule intended to make subscription cancellations easier for consumers, blaming the Trump administration's influence.
The U.S. Court of Appeals for the 8th Circuit vacated the click-to-cancel rule, stating that the FTC did not adequately allow industry enough time to evaluate its cost-benefit analysis.
Public comments concerning the cancellation rule were reported to be overwhelmingly supportive, highlighting consumer frustrations with the difficulty of canceling subscriptions.
The Federal Trade Commission's recent problems reflect a growing issue as complaints about subscription services increased to nearly 70 per day by early 2024.
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