Progressive Politics

A federal rule designed to make canceling subscriptions as easy as signing up for them has been struck down by a US federal appeals court just days before it was scheduled to take effect.

The US court of appeals for the eighth circuit vacated the Federal Trade Commission’s “click-to-cancel” rule, which would have required companies to allow consumers to cancel subscriptions using the same method they used to sign up, after finding that the commission behind it failed to follow required procedures under the FTC Act during the rule-making process.

“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 court wrote, adding that “vacatur of the entire Rule is appropriate in this case because of the prejudice suffered by Petitioners as a result of the Commission’s procedural error”.