The Eighth Circuit Cancelled FTC’s “Click to Cancel” Rule
Another consumer protection regulation gets vacated by a federal court just before enforcement started. This time the Federal Trade Commission (FTC) was the victim. The Eighth Circuit vacated the Federal Trade Commission's "Click to Cancel" rule today.
Here the five things you need to know now:
The FTC is clicked to cancel role was scheduled to go into effect on July 10, 2025 after the FTC stated in May 2025 they would delay enforcement.
The rule attempted to standardize subscription services by requiring all material terms to be disclosed at the time of contract and making cancelling easier.
The rule also applied both to B2B and B2C contracts.
It's been completely vacated for procedural grounds due to the FTC's failure to issue a preliminary regulatory analysis.
There still could be similar state rules which may apply. For example, California's rule recently went into effect on July 1. California's rule, however, only applies to B2C agreements. New York and other states are still working on getting these laws passed and implemented.
The good news about this ruling by the Eighth Circuit is that it gives a reprieve to many companies who were either unaware of the new rule or had not planned to comply. This was especially true in the B2B space.
As noted above, while this federal law might be vacated, the push for “click to cancel” laws is not going away. With multiple states looking to enact similar laws, this may end up with a similar patchwork of laws like we currently have in the privacy arena.
