The FTC’s consumer-friendly cancellation rule has been postponed until 2025 as telecom lawsuits and new Trump-era leadership complicate its future.
At a Glance
- FTC delays ‘Click-to-Cancel’ rule until July 14, 2025
- Rule requires cancellations be as easy as signups
- Telecoms sue, claiming regulatory overreach
- Trump-led FTC reshuffle clouds future enforcement
Rule Delayed Amid Industry Lawsuits
The Federal Trade Commission’s “Click-to-Cancel” rule, which would force companies to make cancelling subscriptions as simple as signing up, has been delayed until July 14, 2025. The agency cited implementation burdens on regulated industries, according to Engadget.
Watch a breakdown: FTC delays Click-to-Cancel rule enforcement
The rule aims to eliminate “subscription traps” and junk fees by requiring clear, user-friendly cancellation pathways. But pushback has been swift. As The Verge reports, major telecom and subscription giants argue the rule is too broad, and that the FTC is overstepping its legal authority.
Political Shakeups and Pushback
The lawsuits challenging the rule are now consolidated in the Eighth Circuit Court of Appeals. Critics say the one-size-fits-all approach risks undermining security measures for sensitive services. The Epoch Times noted that industry groups fear malicious actors could exploit weak cancellation barriers if identity verification is restricted.
Complicating the landscape further is the Trump administration’s overhaul of the FTC. With two Democratic commissioners removed, enforcement of Biden-era regulatory plans may be deprioritized. Still, the FTC states it is “open to amending the rule” should implementation challenges emerge during enforcement.
Regulatory Future in Limbo
The rule’s stated intent—to prevent companies “from making it any more difficult for consumers to cancel than it was to sign up”—remains popular with consumer advocacy groups. But for now, the rule hangs in the balance, with telecom lawsuits and agency leadership changes threatening to derail it entirely.
Whether the Click-to-Cancel rule becomes a landmark reform or fades under legal pressure will depend on how the FTC navigates the political and judicial scrutiny now aimed squarely at its authority.
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