Why Is This Even a Fight?
The FTC’s “click-to-cancel” rule was supposed to be common sense: if you can sign up for something online with one click, you should be able to cancel it the same way. Just days before the rule was set to take effect in July 2025, a federal appeals court struck it down. Not because the rule was unfair, but because the FTC didn’t fill out the right paperwork.
That’s where this becomes frustrating. It’s ridiculous that something clearly beneficial to consumers even needs to be a rule in the first place. It’s even more absurd that the government couldn’t get it over the finish line because of a technicality. This whole situation is a reminder that without legislation, companies will continue to push ethical boundaries. Unfortunately, our current systems give them all the room they need.
What the Rule Would’ve Done
Here’s what the FTC’s “click-to-cancel” rule tried to do:
- ✅ Required companies to let people cancel subscriptions online just as easily as they signed up.
- ✅ Forced companies to tell you when a free trial or promo would end.
- ✅ Made it illegal to automatically charge after a trial without getting your explicit consent.
You’d think that would be uncontroversial. Consumers want it. Most people have a story of getting stuck in a subscription hell-loop. But companies? They know making cancellation difficult keeps money flowing. They fought back.
The Legal Loophole That Killed It
This wasn’t about whether the rule was good or bad. The court didn’t argue against the rule’s purpose. They agreed deceptive subscription tactics are a problem. But the FTC messed up the process.
By law, if a rule is expected to have an economic impact of more than $100 million per year, the FTC must conduct a detailed regulatory analysis before finalizing it. The FTC said the impact would be less than that. But the court and an administrative law judge disagreed, finding the number likely would exceed $100 million annually when you factor in things like compliance costs for businesses and lost revenue from easier cancellations.
So the court vacated the rule. Not because of what it would do, but because the FTC didn’t follow the correct steps. That means the entire process has to start over if the FTC wants to try again.
A Personal Story of Why This Rule Matters
Years ago, I signed up for a gym membership. A few months later, I became pregnant with twins. When I tragically lost one and was put on bed rest, going to the gym wasn’t an option. Naturally, I tried to cancel.
What did it take to get out of it? A doctor’s note.
Let that sink in. I had to medically prove that I couldn’t go to the gym anymore just to cancel a membership. That experience changed how I see subscription services. I now avoid them, and I will never sign up for a gym again. Here’s the thing: if canceling had been easy, I probably would’ve returned later.
That’s the part companies don’t understand. Making it hard to cancel doesn’t just hurt consumers. It burns bridges. It damages trust. You don’t win loyalty by trapping people.
This Was a Bipartisan Failure
While it’s tempting to blame the court or the current political climate, this mishandling happened under the Biden administration. The FTC failed to anticipate the rule’s true economic impact, which legally triggered the need for a full analysis. That mistake gave business groups the opportunity to sue, and win.
Worse, when the rule was originally finalized in October 2024, it passed along party lines: Democrats in favor, Republicans opposed. So even if the FTC starts over, it’s highly unlikely this will go anywhere in a divided or hostile Congress.
At the time of this writing, the FTC hasn’t announced whether it will appeal, restart the process, or drop the rule entirely.
Let’s Talk About What’s Really at Stake
This isn’t just about clicking a button. This is about consumer respect and the fact that industries are willing to exploit confusion and friction to hang onto your money.
We live in a world where companies spend millions optimizing the signup funnel but do everything they can to hide the exit. Some require you to call customer service. Others only allow cancellations by mail. Some bury the option under six layers of menus.
Why? Because they know the longer you stay, even unwillingly, the more they profit.
The FTC rule was trying to create a baseline level of decency. A way to say, “No more of this.” That it failed over a paperwork error feels like a slap in the face to consumers who have spent years navigating cancellation mazes.
What Can You Do?
Until a rule like this gets passed, here’s what you can do:
- 🟢 Reward companies that make it easy to cancel. Tell your friends. Share it online.
- 🔴 Boycott companies that trap you. Even if it’s inconvenient.
- 🗣 Speak up. File complaints with the FTC. Your voice helps document patterns.
- 🧠 Be cautious before signing up for subscriptions. Especially free trials that auto-renew.
The market can’t fix this on its own because deception is profitable. As consumers, we can push back.
If companies respected their customers, this rule wouldn’t have been necessary. If the government had followed its own procedures, it might have become law. But here we are, still stuck in subscription traps because neither did what they were supposed to.
The failure of the click-to-cancel rule isn’t just a missed opportunity. It’s a symptom of a larger issue: that consumers are still expected to fight tooth and nail just to stop paying for something they no longer want.
We deserve better. And until the law catches up, it’s up to us to demand it.
