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by raywatcher
345 days ago
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Just days before the FTC’s “Click-to-Cancel” rule was set to take effect in July 2025, the U.S. Court of Appeals for the Eighth Circuit struck it down. The court ruled that the FTC violated federal procedural requirements by failing to conduct a preliminary regulatory analysis, which is mandatory for any rule expected to have an economic impact exceeding $100 million annually. Although the FTC initially claimed the rule would fall below that threshold, an administrative law judge later found that compliance costs would exceed it—unless every business somehow managed to implement the rule using fewer than 23 hours of professional services at the lowest possible rate. The court concluded that the FTC’s failure to issue a separate preliminary analysis for public review deprived stakeholders of a meaningful opportunity to challenge or shape the rule, rendering it procedurally invalid. So no, the unanimous ruling by the Eighth Circuit didn’t kill the Biden-era regulation because the judges were Republican appointees. It was struck down because bureaucratic procedures weren't followed. Its a shame because I believe canceling subscriptions should be easy. It often is not in the U.S. (I’m looking at you adobe)this really undermines consumer interests :( |
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I mean that's one way to comply with "click to cancel". You could also make signing up more difficult and I doubt that would take 23 hours.