Businesses can still make people jump through endless hoops
Court nullifies “click-to-cancel” rule that required easy methods of cancellation
FTC failed to follow rulemaking process required by US law, judges rule.
Jon Brodkin
A federal appeals court today struck down a "click-to-cancel" rule that would have required companies to make cancelling services as easy as signing up. The Federal Trade Commission rule was scheduled to take effect on July 14 but was vacated by the US Court of Appeals for the 8th Circuit.
This was rushed through when the FTC issued the rules and as foretold ...
At the time of the vote, Holyoak's dissenting statement accused the majority of hurrying to finalize the rule before the November 2024 election and warned that the new regulation "may not survive legal challenge."
That said it's really frustrating to see this as a consumer. Even the judges agreed.
Indicating their sympathy with the FTC's motivations, judges wrote that many Americans "have found themselves unwittingly enrolled in recurring subscription plans, continuing to pay for unwanted products or services because they neglected to cancel their subscriptions." Last year, the FTC updated its 1973 Negative Option Rule by "adding provisions that bar sellers from misrepresenting material facts and require disclosure of material terms, express consumer consent, and a simple cancellation mechanism," the ruling said.
Oh well. Let's see what's next. I continue to have hope for more balance between business, government, and consumers.
