A federal appeals court has halted the enforcement of a Federal Trade Commission (FTC) rule designed to make canceling subscriptions as easy as signing up for them. The U.S. Court of Appeals in St. Louis struck down the rule just days before its planned July 14 enforcement, siding with business groups who argued that the FTC failed to follow proper administrative procedures. The ruling did not endorse unfair marketing practices but found fault with the process the FTC used to implement the rule.
Although the FTC has not formally responded, insiders suggest the agency is unlikely to challenge the decision. With a Republican chair who opposed the rule during its drafting, and a political climate less favorable to new regulatory protections under the second Trump administration, the future of the click-to-cancel rule appears uncertain.
Consumer protection advocates, however, are frustrated. Erin Witte, director at the Consumer Federation of America, voiced her disappointment in a post on X (formerly Twitter), criticizing the judicial logic that seemed to favor corporate objections over 16,000 consumer complaints. Her remarks underline what many consumer watchdogs view as a lost opportunity to curb one of the most common modern-day consumer frustrations, subscription traps.
The now-blocked rule was aimed at simplifying the cancellation process across a wide range of services, from streaming platforms and gym memberships to beauty boxes and dietary supplements. It mandated that companies use the same method and number of steps for cancellation as they did for enrollment. In other words, if a service required one click to join, it had to offer one-click cancellation. If enrollment happened over the phone, the customer had to be able to cancel the same way. Additionally, companies were required to clearly disclose key terms like recurring charges, renewal dates, and price increases.
The rule’s rollout, originally approved in October 2024, had been delayed until July 2025 to give companies time to comply. Advocates believed it would have significantly reduced predatory practices in subscription-based marketing. As Shennan Kavanagh of the National Consumer Law Center explained, the rule contained “common sense” guidelines that would have prevented consumers from unknowingly losing money to services they no longer wanted or used.
While the court decision is a blow to federal consumer protections, many companies have already moved toward easier cancellation interfaces driven not just by customer demand, but by existing state laws. For instance, California and New York have already passed legislation requiring similar ease of cancellation. According to Teresa Murray of U.S. PIRG, most companies are unlikely to roll back these improvements now, even in the absence of the FTC mandate.
Still, consumers need to be vigilant. Regardless of the state you live in, it’s important to read the terms and conditions carefully before signing up for recurring services. Watch out for pre-checked boxes that could lead to hidden charges or automatic renewals. For every subscription you start, set a reminder to review or cancel it before the renewal date. If you do cancel, make sure to remove your credit card information to avoid being re-billed.
Many companies will offer last-minute deals or discounts when you attempt to cancel. While these offers might be tempting, consumers should be cautious and make sure they don’t end up locked into another cycle of charges they didn’t intend to accept. Always note when any trial offer or promotional pricing ends so you can cancel before being charged the full rate.
Free trial offers, in particular, remain a major concern. Often marketed as risk-free, these trials can quietly convert into expensive subscriptions unless canceled exactly on time. Worse, many consumers don’t realize that by agreeing to a trial, they may have already authorized recurring charges hidden in fine print. Using a credit card instead of a debit card for these transactions offers better protection. If a company refuses to honor a cancellation, credit card holders can dispute charges more easily than those using debit cards, which are directly tied to your bank account.
If you’re struggling to cancel a service or feel misled by a subscription program, you should file a complaint with the FTC and your state attorney general.
Meanwhile, the FTC’s lawsuit against Amazon over Prime subscription practices remains active. Filed in June 2023, the lawsuit alleges that Amazon enrolled customers in its Prime program without consent and deliberately made cancellation difficult, a claim Amazon denies. The case is moving forward, with a trial expected in late September. Notably, a judge recently rebuked Amazon for withholding tens of thousands of documents during the discovery process, warning that similar conduct could result in sanctions.
In the bigger picture, the court’s decision to block the FTC’s click-to-cancel rule reflects a regulatory environment where corporate lobbying and procedural challenges can stall reforms aimed at improving consumer autonomy and transparency. Although some state-level safeguards exist, the absence of a federal standard means the burden once again falls on individual consumers to protect themselves against unfair or deceptive practices in the subscription economy.