Federal Court Blocks 'Click-to-Cancel' Rule for Subscriptions

'Click-to-Cancel' Rule Blocked

• ⚖️ A federal appeals court has blocked the FTC's 'click to cancel' rule, which was set to go into effect on July 14th.
• 🚫 The rule aimed to force businesses to provide an easy cancellation method for subscriptions, free trials, and auto-renewals, similar to how easy it is to sign up.

Reasons for the Block

• 🏛️ The court found that the FTC did not follow proper protocol when creating the rule, deeming the procedural deficiencies "fatal."
• 🗣️ An FTC commissioner suggested the rule was blocked because the previous administration "cut corners and didn't follow the law."

Impact on Consumers

• 📉 This decision is seen as a setback for consumers who are often caught in auto-renewal cycles, costing millions collectively each month.
• 💡 Companies like Rocket Money, which built a business around canceling subscriptions for members, expressed dismay.

Consumer Advice Moving Forward

• 📅 Consumers are advised to set cancellation reminders for trial periods and watch for price increases.
• 📞 If unhappy with charges, consumers should contact the company directly via phone or email to request a refund.
• ✅ It's crucial to confirm cancellations and review statements to ensure charges have stopped, disputing them with a credit card company if necessary.