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”.
For those who missed it, the “procedural error” was:
When a proposed rule will cause an impact of more than $100M, a preliminary regulatory analysis is required. The FTC determined that the impact would be under $100M, so did not do the preliminary regulatory analysis. The court decided that the impact was more than $100M, causing the “procedural error” after the fact.
Either it’s a bad faith ruling, or, there’s even more reason that the rule is necessary as that would mean that companies are leeching off more than $100M from customers through shady and anti-consumer tactics.
I’d wager that hard-to-cancel gym memberships alone comprise of more than $100 million.
I hope this judge trys to cancel something vital and unable to.
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Someone got some Amazon gift card
bribespresents.Donald has taught us to just ignore rules we dislike.
I mean in reality absolutely nothing, but through the eyes of maga…dealers choice?
Just WHY
Because it’s a stupid rule that probably helps everyone but since the homo liberal monsters that don’t think in Nazi came up with it, it must go. Anything that protects consumers from fraud must go. Business musnt be impeded.
I’m confused, what exactly is homo about these liberal monsters?
after finding that the commission behind it failed to follow required procedures under the FTC Act during the rule-making process.
It literally stands right there
You misspelled “grasping at any technicality for money.”
Please eu save us ( not usa i mean in general consumer rights)
You’re out of luck, we’ve had this for years now and it hasn’t turned out to be as contagious as cookie pop-ups have
