The 8th U.S. Circuit Court of Appeals has blocked the Federal Trade Commission's proposed 'click-to-cancel' rule, which aimed to simplify subscription cancellations. The court determined the FTC, under former Chair Lina Khan, did not conduct a necessary analysis of the rule's costs and benefits. The regulation would have mandated that businesses allow cancellations via the same methods as sign-ups, preventing complicated cancellation processes. It also required consent from customers before charging for memberships or auto-renewals related to free trials. The rule was to take effect on July 14, but is now halted by this ruling.
The 8th U.S. Circuit Court of Appeals blocked the FTC's 'click-to-cancel' rule, stating the agency failed to assess the costs and benefits of the regulation.
The regulation aimed to ensure that canceling subscriptions would be as simple as signing up, preventing customers from having to navigate complex cancellation processes.
Businesses were required to obtain customer consent before charging for memberships or auto-renewals, addressing issues related to free trial programs.
The 'click-to-cancel' rule was originally set to take effect on July 14, before being halted by the appeals court ruling.
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