Appeals Court Strikes Down FTC 'Click-to-Cancel' Subscription Rule

The court’s ruling centered on procedural claims brought by the U.S. Chamber of Commerce, which argued the FTC failed to provide sufficient opportunity for industry to assess the agency's cost-benefit analysis. Following the decision, former FTC chair Lina Khan criticized the current commission for delaying the rule’s implementation, which was originally set for May 14. Under current leadership, the FTC voted to postpone the mandate, citing industry compliance concerns.

Consumer advocates argue the delay provided a window for corporate lobbyists to dismantle the protection. Lee Hepner of the American Economic Liberties Project characterized the move as a failure of the rulemaking process, which he claims allows courts to prioritize corporate interests despite overwhelming public support. While current commissioner Mark Meador maintains the rule was blocked because the previous commission 'cut corners,' critics point out that the current leadership appears unlikely to move for a reissue, leaving consumers vulnerable to the subscription traps the rule was designed to eliminate.