The federal appeals court blocked the FTC's "click-to-cancel" rule just before it was to take effect, stating that the FTC failed to provide a necessary preliminary regulatory analysis. The FTC's proposed changes aimed to require businesses to secure consent before charging for memberships and disclose promotion end dates. The Eighth Circuit found a procedural error in the rulemaking process and vacated the rule, emphasizing that the deficiencies were critical. Meanwhile, the FTC continues to prepare for a trial concerning Amazon's subscription practices related to its Prime program.
A federal appeals court blocked the FTC's "click-to-cancel" rule, which would have made it easier for consumers to cancel subscriptions and memberships.
The FTC's proposed changes aimed to require businesses to obtain consumer consent before charging for memberships and to disclose promotional offer endings.
The Eighth Circuit court ruled that the FTC's failure to conduct a required preliminary regulatory analysis constituted a procedural error.
The court highlighted the need for a proper rulemaking process, stating that procedural deficiencies were fatal to the FTC's rule.
Collection
[
|
...
]