US appeals court blocks FTC’s ‘click-to-cancel’ rule for subscriptions

An American appeal court has blocked the Federal Trade Commission “Click-to-Censel” Rules This would be necessary to make companies easier to cancel the membership as it had to sign up. The rule was scheduled to be effective on 14 July.

Roots The report stated that the 8th US Circuit Court of Appeal at St. Louis said on Wednesday that the FTC, which had passed the rule under the former Democratic Chair Leena Khan, failed to make an initial analysis of the cost and benefits of the rule.

Regulation will require businesses to allow customers to cancel their membership using the same method, which they used to sign up. For example, if there are only a few clicks from signing up for membership, it should not require navigating through several webpages or working with a chatbot to cancel it.

The rule will also need businesses to get consent before charging customers for membership, auto-renewal, or free testing offers.

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