Appeals Court Overturns FTC's Click-to-Cancel Rule
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A federal appeals court overturned the FTC's "click-to-cancel" rule for subscriptions. The rule, slated to begin next week, aimed to simplify cancellations for services like gym memberships and Amazon Prime. Industry groups challenged the rule, arguing it overstepped the FTC's authority. The court sided with the industry groups, citing procedural errors in the FTC's rulemaking process, including insufficient stakeholder input. The court's decision, unanimous, leaves the rule's future uncertain, especially with a Republican-led FTC.
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