Latest news with #negativeoptionmarketing
CNET
09-07-2025
- Business
- CNET
The FTC's 'Click to Cancel' Rule Is Blocked. Here's What That Means for Your Subscriptions
The Click to Cancel rule is supposed to make it as easy to cancel a subscription as it is to sign up for Federal Trade Commission's "click to cancel" rule -- which would have made it easier to cancel unwanted subscriptions -- has been blocked by the US Eighth Circuit Court of Appeals. The rule was set to take effect on July 14. "Click to cancel" would have required businesses to clearly disclose terms and obtain informed consent before charging for a subscription or membership. It would also have required companies to display when promotional offers or free trials would end and make it as easy to cancel your membership as it is to sign up for one. The appeals court said that the FTC failed to conduct a preliminary regulatory analysis, which is required for rules that could impact the US economy by more than $1 million. "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's ruling stated. The court's decision comes after a recent CNET survey found that subscribers are paying an average of $1,080 and wasting $200 per year on unwanted subscriptions. With the FTC rule shot down, it could make it harder for you to cancel unwanted subscriptions. How to cancel unwanted subscriptions Now that the rule is blocked, you may still have to jump through hoops to cancel some of your subscriptions since businesses aren't required to offer clear ways to end a subscription. Pay close attention to your monthly subscriptions and memberships to ensure you aren't paying for unused services. You can identify unwanted subscriptions by combing through your bank account and credit card statements from the past month and looking for recurring charges. If you spot any unwanted subscriptions, log in to your service account and cancel or pause the service. If you're struggling to find an option to cancel, call the service's customer service phone number to end your account. In some cases, like with certain gym memberships, you may be required to cancel in person. If that sounds like too much work, CNET Money editor Kelly Ernst has an easier solution. "The budgeting app I use, Rocket Money, can help you find subscriptions you're not using and cancel them for you. It saved me $400 in 15 minutes." Rocket Money is CNET's pick for best budgeting app, and it comes with both a free and a paid tier. You can have the app look for recurring subscriptions for free. If you'd like it to cancel on your behalf, you'll need to sign up for the paid tier, which starts at just $6 a month.
The Guardian
09-07-2025
- Business
- The Guardian
US court strikes down ‘click-to-cancel' rule designed to make unsubscribing easier
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'. The vacated rule meant to go into effect on 14 July would have covered all forms of negative option marketing – programs that allow sellers to interpret customer inaction as acceptance of subscriptions, often leading to unintended charges. The FTC's original 1973 rule only covered limited forms of these practices. It would have also stopped businesses from forcing customers through lengthy chat sessions with agents or creating other barriers to cancellation. The decision represents a major victory for businesses that challenged the FTC's authority to modernize consumer protections without following what they argued were mandatory procedural requirements. Meanwhile, Letitia James had been encouraging consumers to prepare for the rule's implementation, writing in a Tuesday press release that 'New Yorkers should never have to jump through hoops just to cancel an unwanted subscription'. The New York attorney general's office told the Guardian that the office is reviewing the decision. The commission has faced mounting complaints about subscription practices, receiving nearly 70 consumer complaints per day in 2024, up from 42 daily complaints in 2021. The rule applies to almost all negative option programs across any media platform. Similar state rules had yielded results in New York, where James says she's secured $600,000 in penalties from Equinox for making cancellations difficult and won a lawsuit against SiriusXM for trapping customers in unwanted subscriptions. The decision may now force the FTC to restart its rule-making process and could influence how the agency approaches future consumer protection regulations.
The Guardian
08-07-2025
- Business
- The Guardian
US court strikes down ‘click-to-cancel' rule designed to make unsubscribing easier
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'. The vacated rule meant to go into effect on 14 July would have covered all forms of negative option marketing – programs that allow sellers to interpret customer inaction as acceptance of subscriptions, often leading to unintended charges. The FTC's original 1973 rule only covered limited forms of these practices. It would have also stopped businesses from forcing customers through lengthy chat sessions with agents or creating other barriers to cancellation. The decision represents a major victory for businesses that challenged the FTC's authority to modernize consumer protections without following what they argued were mandatory procedural requirements. Meanwhile, Letitia James had been encouraging consumers to prepare for the rule's implementation, writing in a Tuesday press release that 'New Yorkers should never have to jump through hoops just to cancel an unwanted subscription'. The New York attorney general did not respond to a request for comment. The commission has faced mounting complaints about subscription practices, receiving nearly 70 consumer complaints per day in 2024, up from 42 daily complaints in 2021. The rule applies to almost all negative option programs across any media platform. The FTC's enforcement efforts had yielded results in New York, where James says she's secured $600,000 in penalties from Equinox for making cancellations difficult and won a lawsuit against SiriusXM for trapping customers in unwanted subscriptions. The decision may now force the FTC to restart its rule-making process and could influence how the agency approaches future consumer protection regulations.
