The agency withdrew the rule after the appellate court struck the rule down.
The Eighth Circuit Court of Appeals determined that a “click-to-cancel” rule issued by the Federal Trade Commission (FTC) unlawfully skipped a market review process required for new FTC regulations. The rule was instituted under President Biden’s administration, which was focused on curbing predatory business practices in the digital space. The regulation was intended to make subscription services easier to unsubscribe from, hence the “click-to-cancel” term.
In response to the legal challenge from U.S. Chamber of Commerce and Custom Communications, the appellate court stated, “Commission’s rule-making process was procedurally insufficient and Petitioners demonstrated prejudicial error.”
“While we certainly do not endorse the use of unfair and deceptive practices in negative option marketing, the procedural deficiencies of the Commission’s rulemaking process are fatal here,” the court wrote.
As the Lord Leads, Pray with Us…
- For judges in district and appellate courts to receive God’s wisdom as they hear and rule on challenges to federal agency policies and actions.
- For FTC Chair Ferguson and members of the commission as they assess rules and regulations for digital commerce.
Sources: Fortune, Consumer Affairs
