FTC’s Click-to-Cancel Rule Vacated by Federal Appeals Court (1)

The Federal Trade Commission’s rule requiring businesses to create an easy way to cancel recurring subscriptions was struck down because the rulemaking process was flawed, a federal appeals court said Tuesday.

“While we certainly do not endorse the use of unfair and deceptive practices in negative option marketing,” a term for automatic subscription renewals, “the procedural deficiencies of the Commission’s rulemaking process are fatal here,” the US Court of Appeals for the Eighth Circuit said in a per curiam opinion.

The FTC impermissibly sidestepped a statutory requirement to provide a preliminary regulatory analysis for rules that will affect the national ...