It was supposed to be a major win for everyday consumers—finally being able to cancel that subscription you forgot about or no longer use with the same ease you signed up for it. But just days before it was set to roll out, a federal appeals court blocked the Federal Trade Commission’s (FTC) “click-to-cancel” rule from going into effect.
The rule, part of the Biden administration’s “Time is Money” initiative, was meant to crack down on the growing problem of sneaky subscription renewals. Think of it as: “If signing up took one click, canceling shouldn’t feel like a maze.” Simple, right?
Not so fast.
The U.S. Court of Appeals for the Eighth Circuit ruled this week that the FTC didn’t follow proper procedures in crafting the regulation. Specifically, the court said the agency skipped a mandatory preliminary regulatory analysis—something required for rules projected to impact the economy by over $100 million annually. The FTC originally claimed the impact would be below that threshold, but follow-up estimates suggested otherwise.
“While we certainly do not endorse the use of unfair and deceptive practices… the procedural deficiencies of the Commission’s rulemaking process are fatal here,” the court wrote.
So, for now, the rule is out.
What Would’ve Happened
Had the rule taken effect on July 14, it would’ve forced businesses to:
- Get clear consent before charging customers for subscriptions, renewals, or free trial programs that roll into paid plans.
- Clearly tell customers when a free trial ends and what they’ll be charged.
- Make canceling just as easy as signing up—whether that’s online, over the phone, or through an app.
It also would’ve made things like hunting for a hidden “Cancel” button or having to call customer service just to cancel a streaming service (we’re looking at you, cable companies) a thing of the past.
Why This Matters
The average American spends over $1,000 a year on subscriptions—and roughly $200 of that goes toward stuff they no longer use. That’s gym memberships, streaming services, digital tools, and more that continue billing silently in the background.
With the FTC’s rule now blocked, companies are under no obligation to make canceling easy, meaning many consumers will continue wasting money unless they go hunting through credit card statements manually or use third-party tools to flag recurring charges.
Apps like Rocket Money (formerly Truebill) are increasingly popular for this exact reason. They’ll scan your transactions for subscriptions and even cancel them for you—if you’re willing to pay for the premium tier.
What’s Next?
The FTC hasn’t commented since the ruling but is still pressing forward on related fronts. It’s currently gearing up for a trial against Amazon over its Prime program, alleging the company made it intentionally difficult for users to cancel their memberships.
Meanwhile, the blocked rule leaves consumers stuck in a system where signing up is frictionless—but canceling is often a chore.
So until there’s a new rule (or a workaround that passes legal muster), the advice is simple: check your subscriptions monthly, read the fine print on free trials, and be ready to click, call, or even show up in person to cancel.
And if all else fails—there’s an app for that.