A federal appeals court has put the brakes on the Federal Trade Commission’s new Click-to-Cancel rule. It was supposed to kick in on July 9, 2025.
The rule would have forced businesses to make cancelling subscriptions just as simple as signing up. That includes memberships, streaming services, and anything with recurring payments. The FTC said this move would protect people from being stuck with subscriptions they no longer want.
Business groups led by the U.S. Chamber of Commerce challenged the rule in court. They argue it’s too broad, expensive, and difficult to implement. For now, the court has agreed to freeze it until it reviews the full case.
The FTC isn’t backing down. In a statement, it said the rule is designed to crack down on “dark patterns” that trick people into staying subscribed. These dark patterns include hidden cancel buttons or confusing processes that wear customers down until they give up.
Research from Princeton University found that about 11% of popular e-commerce sites use dark patterns to manipulate users. Many of these sites intentionally make cancellation hard to find.
The Chamber of Commerce claims the rule could cost businesses up to $100 billion over the next decade. The FTC disagrees, estimating compliance costs closer to $15 billion in ten years. It argues the benefit to consumers outweighs any added expenses for businesses.
In 2023, the FTC received fraud reports from around 2.6 million consumers, which was also the same amount as the year proper.. Jessica Rich, former director of the FTC’s consumer protection bureau, said these rules are aimed at stopping shady tactics that keep people locked in.
For now, businesses can stick with their existing cancellation systems. But the fight isn’t over. The case will continue in the Fifth Circuit Court of Appeals in the coming months.
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