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  "description": "Major cable providers prevail.",
  "path": "/court-vacates-ftcs-click-to-cancel-rule/",
  "publishedAt": "2025-07-09T22:20:32.000Z",
  "site": "https://broadbandbreakfast.com",
  "tags": [
    "_“click-to-cancel” rule_",
    "_annual impact on the U.S. economy exceeds $100 million._",
    "All Videos from Speeding BEAD Summit",
    "_FTC’s 1973 Negative Option Rule_",
    "_Khan_",
    "_a statement_",
    "_cancelling part of a bundled service package rather than the entire bundle_",
    "_five days before that date_",
    "_“the original deferral period insufficiently accounted for the complexity of compliance.”_"
  ],
  "textContent": "WASHINGTON, July 9, 2025 – Federal regulations designed to make it easy to cancel a cable TV bill just got tossed out in court.\n\nOn Tuesday, the U.S. Court of Appeals for the Eighth Circuit in St. Louis vacated the Federal Trade Commission’s _“click-to-cancel” rule_ just days before it was set to take effect.\n\nThe Court found that the FTC failed to conduct a preliminary regulatory analysis of the rule’s costs and benefits – a required step for rules whose _annual impact on the U.S. economy exceeds $100 million._\n\n\n\n_****FROM SPEEDING BEAD SUMMIT****_\n _****Panel 1: How Are States Thinking About Reasonable Costs Now?****_\n_****Panel 2: Finding the State Versus Federal Balance in BEAD****_\n _****Panel 3: Reacting to the New BEAD NOFO Guidance****_\n _****Panel 4: Building, Maintaining and Adopting Digital Workforce Skills****_\n\n All Videos from Speeding BEAD Summit \n\n“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 stated. “The Rule does contain a severability provision which keeps the remaining provisions in effect if any provisions are stayed or determined to be invalid. But vacatur of the entire Rule is appropriate in this case because of the prejudice suffered by Petitioners as a result of the Commission’s procedural error.”\n\nThe rule, spearheaded by former Democratic FTC Chair **Lina Khan** in October 2024, was intended to modernize the _FTC’s 1973 Negative Option Rule_, which addressed unfair subscription practices. Under the new mandate, businesses would be required to make subscription cancellations as simple as sign-ups.\n\n“Too often, businesses make people jump through endless hoops just to cancel a subscription,” _Khan_ said in _a statement_ following the rule’s announcement. “The FTC's rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”\n\nThe mandate sparked backlash from the cable industry, including NCTA – The Internet & Television Association – the trade association which represents Charter, Comcast, Cox, Disney, and Warner Bros. These providers argued the “click-to-cancel” rule could increase costs for consumers, especially when _cancelling part of a bundled service package rather than the entire bundle_.\n\nAlthough the rule was scheduled to start on May 14, _five days before that date_, the FTC unanimously voted to postpone implementation by 60 days, stating _“the original deferral period insufficiently accounted for the complexity of compliance.”_\n\nA request for comment from the FTC by _Broadband Breakfast_ was not answered in time for publication.",
  "title": "Court Vacates FTC’s Click-to-Cancel Rule",
  "updatedAt": "2026-03-11T03:26:26.060Z"
}