On July 8, 2025, the Eighth Circuit vacated the Federal Trade Commission’s (“FTC”) Negative Option Rule, also known as the Click-to-Cancel Rule, on procedural grounds. The Click-to-Cancel Rule, which provided a streamlined path for consumers to cancel subscription services in a few clicks of a mouse, was scheduled to take effect on July 14, 2025, but the Court found that the FTC had failed to follow mandatory procedural requirements.
Petitioners argued that the FTC had, in implementing the rule, exceeded its statutory authority, skipped a requisite preliminary regulatory analysis during the rulemaking process pursuant to Section 22 of the Federal Trade Commission Act (“FTC Act”), and acted in an arbitrary and capricious manner under the Administrative Procedure Act (“APA”) by enacting the Click-to-Cancel Rule. The Court agreed, finding that the FTC violated Section 22 of the FTC Act.Continue Reading Eighth Circuit Cancels Click-to-Cancel







