Congress Seeks Revival of Click-to-Cancel Rule After Court Blocks FTC

A renewed legislative push is underway in Congress to make subscription cancellations as easy as sign-ups through the proposed 'Click to Cancel Act,' following the recent judicial nullification of a similar Federal Trade Commission (FTC) rule. The FTC's rule was struck down by a federal appeals court due to procedural shortcomings, specifically the agency's failure to conduct a required economic impact study, despite thousands of consumer complaints about 'subscription traps' and difficult cancellation processes. The new bill, introduced by Democratic lawmakers, aims to codify the FTC's intent by mandating clear, user-friendly cancellation methods and annual reminders before auto-renewals. However, the legislation faces significant hurdles in a divided Congress and is likely to encounter opposition from business interests and a judiciary that previously blocked regulatory efforts. State-level protections in places like California and New York remain in effect, but the prospects for broad federal reform are uncertain. Consumer advocates argue that without federal action, exploitative subscription tactics are likely to persist, leaving many Americans vulnerable to unwanted recurring charges.