U.S. court blocks ‘click-to-cancel’ rule #shorts

From PBS NewsHour.

Last October, The Federal Trade Commission finalized a “click-to-cancel” rule that would have required companies selling subscriptions to make canceling them as easy for consumers as it was to subscribe in the first place. And any company violating that rule could have faced civil penalties.

The Biden-era rule was set to be enforced starting July 14. But days before, a U.S. Court of Appeals blocked the rule, saying the FTC made procedural errors in developing it.

Consumer advocate groups had welcomed the FTC rule, but business groups argued that it would unfairly burden them with costs and regulatory requirements.

The FTC can now appeal the ruling, abandon the rule, or go back and correct the procedural error as they develop the rule again.

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