Click-to-cancel: Difference between revisions
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The '''click-to-cancel''' (CtC) rule is a [[Federal Trade Commission]] (FTC) rule, specifically [https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-425/section-425.6 16 CFR Part 425.6], which requires that subscription services make it as easy to cancel the service as it was to sign up.<ref>https://www.ftc.gov/news-events/news/press-releases/2024/10/federal-trade-commission-announces-final-click-cancel-rule-making-it-easier-consumers-end-recurring</ref> This is designed to combat an anti-consumer practice, where a subscription service makes it very easy to sign up for a service, but requires the customer to jump through hoops to cancel the subscription. The law has been finalized and | The '''click-to-cancel''' (CtC) rule is a [[Federal Trade Commission]] (FTC) rule, specifically [https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-425/section-425.6 16 CFR Part 425.6], which requires that subscription services make it as easy to cancel the service as it was to sign up.<ref>https://www.ftc.gov/news-events/news/press-releases/2024/10/federal-trade-commission-announces-final-click-cancel-rule-making-it-easier-consumers-end-recurring</ref> This is designed to combat an anti-consumer practice, where a subscription service makes it very easy to sign up for a service, but requires the customer to jump through hoops to cancel the subscription. The law has been finalized and was initially set to go into effect May 14, 2025.<ref>https://www.federalregister.gov/d/2024-25534/p-6</ref> On July 8, the U.S. Court of Appeals for the Eighth Circuit blocked the click-to-cancel provision, reasoning that the FTC erred by not first conducting a preliminary regulatory analysis of the rule's costs and benefits. The analysis must be conducted on any rules that impact the economy by more than $100 million. The FTC can still petition the Supreme Court to review the decision through October 6, 2025 <ref>{{Cite web |last=Fouse-Hopkins |first=Lindsay |date=2025-07-17 |title=Eighth Circuit blocks Click-to-Cancel Rule |url=https://www.clarkhill.com/news-events/news/eighth-circuit-blocks-click-to-cancel-rule/ |url-status=live |access-date=2025-07-17 |website=Clarkhill.com}}</ref> | ||
==How it works== | ==How it works== |