A federal appeals court has blocked a new rule that would simplify subscription cancellations, creating a situation where Democratic lawmakers are actively seeking to revive it. The proposed "click-to-cancel" rule demanded subscription services allow easy cancellations akin to their sign-up process. Lawmakers have introduced legislation to codify this rule and have also appealed to Republican FTC Chair Andrew Ferguson for reinstatement. The rule seeks to eliminate barriers, such as requiring customer interactions with agents, in the cancellation process for various services.
Democratic lawmakers are taking multiple routes to try to revive the Federal Trade Commission's "click-to-cancel" rule after an appeals court blocked it on procedural grounds right before it was set to take effect.
The click-to-cancel or negative option rule would have barred companies from throwing up roadblocks to ending gym memberships, streaming video subscriptions, and other services - eliminating extra steps of talking to a live agent, for example, to cancel a subscription purchased with a click of a button.
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