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

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#ftc #subscription #cancellation

Appeals court strikes down ‘click-to-cancel’ rule - The Verge

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

About the People Mentioned

Lina Khan

Lina Maliha Khan was born on March 3, 1989, in London, England, and is a British-American legal scholar who gained prominence for her work in antitrust and competition law.[2] She served as Chair of the Federal Trade Commission (FTC) from June 15, 2021, to January 20, 2025, becoming the youngest person ever to hold this position at age 32.[1][2] Khan's career in antitrust began while she was a student at Yale Law School, where she published the influential essay "Amazon's Antitrust Paradox" in 2017, which analyzed the tech giant's market power and became widely recognized in policy circles.[2] Before her FTC appointment, she worked as legal director at the Open Markets Institute, served as counsel to the House Judiciary Committee's Subcommittee on Antitrust, Commercial and Administrative Law, and was an associate professor at Columbia Law School.[1][7] President Joe Biden nominated Khan to the FTC in March 2021, and she was confirmed by the Senate in June 2021 by a vote of 69 to 28, receiving bipartisan support largely due to her influential anti-Amazon views reflected in Congress.[2] During her tenure as FTC Chair, Khan pursued an aggressive regulatory agenda focused on reinvigorating antitrust and consumer protection enforcement. Her priority initiatives included challenging mergers and acquisitions, restricting non-compete clauses, protecting sensitive data from surveillance, and addressing illegal practices in healthcare.[1][3] Khan was noted by both critics and supporters for her novel regulatory approach, which sometimes resulted in court losses but also prompted businesses to voluntarily drop attempted mergers.[2] Following the 2025 New York City mayoral election, Khan was appointed as co-chair of mayor-elect Zohran Mamdani's all-women transition team in November 2025, where she advises on economic policy and personnel.[1] She continues to teach and write about antitrust law and political economy at Columbia Law School.[8]

About the Organizations Mentioned

Eighth Circuit Court of Appeals

The **United States Court of Appeals for the Eighth Circuit** is a key federal appellate court within the US judicial system, serving as an intermediate level court that reviews decisions from district courts across seven Midwestern states: Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota[1][2][5]. It primarily ensures that laws are applied consistently and fairly by correcting legal errors made in trial courts and overseeing appeals from federal administrative agencies[1][3][7]. Established in 1891, the Eighth Circuit is based mainly at the Thomas F. Eagleton United States Courthouse in St. Louis, Missouri[4][5]. The court originally had thirteen active judgeships, but currently consists of **11 active judges** appointed for life, reflecting the court’s significant judicial authority. Judges serve with lifetime tenure, providing stability and continuity in appellate jurisprudence[1][5]. The court’s leadership includes a chief judge selected based on seniority, age, and service criteria, who serves a term of seven years or until age 70[5]. The Eighth Circuit handles a broad array of cases, including civil and criminal appeals as well as appeals involving federal agencies. Its jurisdiction covers a vast geographic region and a diverse population, making it influential in shaping federal law in the Midwest[1][2]. The court follows strict procedural rules for appeals to ensure orderly and fair review processes, including the filing of a Notice of Appeal and compliance with local and federal appellate rules[2][6]. Historically, the court has played a role in significant legal matters, including those related to civil rights and federal regulatory issues, contributing to important precedents. The court’s location in St. Louis also ties it to notable legal landmarks such as the Old St. Louis Courthouse, known for the Dred Scott case, symbolizing its deep roots in American legal history[4]. For business and technology professionals, the Eighth Circuit is particularly relevant as it adjudicates federal cases

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