Federal Trade Commission (FTC) “Click-to-Censel” Rules On Tuesday, an appeal was killed by the court, a few days ago to be effective.
The rules announced in October 2024. The sellers would “need to make their enrollment easier for consumers as it was to sign up.”
But for the eighth circuit, the US Court of Appeals said that the FTC wiped out its regulation process due to failure to produce initial regulatory analysis, a statutory requirement for those rules whose annual impact on the national economy would be more than $ 100 million.
The FTC argued that it was not required to prepare an initial analysis as its initial estimate of the impact of the rule on the national economy was under a range of $ 100 million – even though the presiding officer eventually determined the effect that the impact had exceeded the limit.
The court disagreed, with the petitioners, siding and the rules vacated.
“We certainly do not support the use of inappropriate and misleading practices in negative option marketing, the procedural shortcomings of the commission’s regulation process are fatal here,” read the court’s opinion.
The FTC refused to comment.
The regulation was part of the FTC’s negative option rule review, the aim was to combat improper or misleading practices related to membership, membership and other recurring payment programs in the digital economy.
It came as more prominent media and tech companies – such as Netflix, Disney and Warner Brothers Discovery – worked to sideline their businesses around streaming and demanded to reduce the number of customers who canceled their membership soon after signing up.
