Federal Appeals Court Blocks Biden-Era Subscription Cancellation Rule

A federal appeals court has blocked the Biden administration's Federal Trade Commission (FTC) "click-to-cancel" rule that aimed to make it as easy to cancel subscriptions as to sign up for them. The U.S. Court of Appeals for the 8th Circuit ruled that the FTC made "fatal" procedural errors in the rulemaking process, particularly by amending an existing rule without conducting the required economic impact analysis given the rule's significant financial implications. The rule, which was part of a broader Biden-era initiative to protect consumers from "junk fees" and deceptive subscription practices, had garnered support from consumer groups due to the high volume of complaints about difficult cancellations. However, it faced strong opposition from business groups and some Republican FTC commissioners who argued it exceeded the commission's authority and imposed unfair regulatory burdens. The court's decision effectively stops the rule from taking effect just days before its scheduled enforcement, leaving many consumers vulnerable to ongoing subscription traps. Despite this setback, proponents like Samuel Levine, former director of the FTC’s Bureau of Consumer Protection, express hope that the FTC will continue efforts to protect consumers from unfair subscription practices.