The End of the 'Click-to-Cancel' Rule

The End of the 'Click-to-Cancel' Rule

In a recent ruling, the Eighth Circuit Court of Appeals has struck down the 'click-to-cancel' rule implemented by the Federal Trade Commission (FTC) under former Democratic Chair Lina Khan. This decision has caused quite a stir in the online business world, as the rule required companies to provide a clear and easy way for customers to cancel subscriptions. The court stated that the FTC did not have the authority to pass this rule, and it should have been done through proper legislation. This ruling has significant implications for both businesses and consumers.

The FTC's Subscription Cancellation Rule

The FTC's rule, passed in 2010, was meant to protect consumers from being trapped in ongoing subscriptions without a clear way to cancel. It required companies to have a prominent 'click-to-cancel' button on their websites, making it easy for customers to end their subscriptions. However