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Controversy over FTC's 'Click-to-Cancel' Rule

#ftc #e-commerce #legal challenges

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

Introduction

The Federal Trade Commission's subscription cancellation rule, also known as the 'click-to-cancel' rule, has been a controversial topic in the world of e-commerce. The rule, passed under former Democratic Chair Lina Khan, aimed to protect consumers from deceptive subscription practices. However, the rule has faced numerous legal challenges, and the latest one has resulted in its vacating by the Eighth Circuit Court of Appeals.

Current Scenario

The Eighth Circuit Court of Appeals' decision to strike down the 'click-to-cancel' rule is a significant blow to the FTC's efforts to regulate the e-commerce industry. The court's ruling was based on the argument that the rule exceeded the FTC's authority and was not supported by any specific legislation. This decision has sparked a debate on the role and power of the FTC in regulating e-commerce, and it remains to be seen if the rule will be revived under the new chair, L

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