Your subscription nightmares just got a reprieve—but not the kind you wanted. The U.S. Court of Appeals for the Eighth Circuit blocked the FTC’s “click-to-cancel” rule on July 8, 2025, killing the regulation that would have forced companies to make canceling subscriptions as easy as signing up.
The Paperwork Problem That Killed Consumer Relief
The court didn’t reject the idea that subscription cancellation should be easier—they torpedoed the FTC’s homework. The agency failed to conduct a proper economic impact analysis required when regulations exceed $100 million annually, violating Section 18 of the FTC Act.
“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 Eighth Circuit ruling stated.
Think of it as getting kicked out of class for not showing your work, even though your answer was right.
What This Means for Your Digital Wallet
That streaming service you’ve been meaning to cancel? Still requires navigating through more menus than a TikTok algorithm. Your gym app that makes cancellation harder than actually working out? Business as usual.
The rule would have required companies to offer cancellation processes no more complex than sign-up, plus clear disclosure when free trials end. Instead, you’re stuck with the current system where canceling feels like escaping a digital escape room designed by someone who genuinely doesn’t want you to leave.
Consumer advocates have called the decision a major setback, with the Consumer Federation of America noting that these complex cancellation processes represent deliberate strategies to boost company profits at consumer expense.
The Industry’s Quiet Victory
Business groups challenged the FTC’s authority, arguing the agency overstepped its bounds without proper cost-benefit analysis. Industry representatives have emphasized that while they support fair business practices, regulations must follow proper procedures. The court agreed, permitting subscription-based companies to maintain their current cancellation workflows.
This decision preserves the dark patterns that consumer advocates have been fighting for years. Those confusing cancellation flows aren’t accidents; they’re features designed to reduce churn.
What Comes Next
The FTC could restart the rulemaking process with proper documentation, but that takes time. Meanwhile, the “Time is Money” initiative—the Biden administration’s broader push to reduce consumer friction—faces its first major setback.
European consumers already enjoy simpler cancellation standards, making this ruling feel like watching other countries get the good Netflix shows while you’re stuck with regional restrictions. Your best defense remains vigilance: screenshot confirmation pages, set calendar reminders for trial periods, and maybe finally organize those subscription notifications cluttering your inbox. The cavalry isn’t coming anytime soon.
