Companies lost no time challenging the consumer protection rule

• FTCs popular Click to Cancel rule struck down by federal appeals court over procedural issues

• Rule aimed to simplify subscription cancellations, targeting negative option marketing practices

• Consumers still have protection options under state laws and personal finance safeguards

It was one of the most popular consumer protection rules and also one of the shortest surviving. The "Click to Cancel" rule was finalized by the Federal Trade Commission to great acclaim on October16, 2024but today a federal appeals courtnullified it. The decision came in a lawsuit filed byCustom Communications, the U.S. Chamber of Commerceand other groups that claimedthe FTC did not follow proper procedures in enacting the measure.

As its name implies, the rule made it easier for consumers to cancel subscriptions. Toasting the rule back in October was, among others,Lisa Gilbert, co-president of Public Citizen, who said that the subscription process was finally out of the hands of greedy corporations [who] have made a habit of obfuscating and over-complicating the cancellation process. The FTCs new rule is a straightforward solution that will save consumers time, money, and customer service headaches.

But, as is often the case, opponents of the rule began picking at it and argued that the FTC had committedprocedural errors that made the rule illegal. And today,athree-judge panel from the U.S. Court of Appeals for the Eighth Circuit agreed and found that the Commissions rule-making process was procedurally insufficient and Petitioners demonstrated prejudicial error."

The rule basically required that companies had to offer a cancellation option that wasas simple as signing up. There's no shortage of examples. Reviews on ConsumerAffairs have lambasted companies includingAdobe, Ancestry, B&H Photo,BarkBox, Coursera, DISH Network, Dollar Shave Club,eharmony, HelloFresh, Match.com, McAfee,Nutrisystem, Office Depot, Planet Fitness, andSiriusXM Satellite Radiofor making it difficult to cancel a subscription. It also provided that companies had to provide clear and simple terms about recurring charges upfront.

All is not lost though. While the FTC rule has been eliminated,state regulators could use their authority under state laws modeled on Section 5 of the FTC Act or their UDAAP authority under Section 1042 of the Consumer Financial Protection Act to attack any subscription practices that they deem to be unfair, deceptive, or abusive to consumers, observers noted.

Click to Cancel The Rule That Got Canceled

What Was the Rule?

• Required easy cancellation as simple as signing up

• Applied to all negative option marketing (e.g., subscriptions with auto-renew)

• Mandated clear disclosures about recurring charges

A straightforward solution to save consumers time, money, and customer service headaches. Lisa Gilbert, Public Citizen

Why It Was Canceled

• Legal challenge by U.S. Chamber of Commerce & Custom Communications

• Court said FTC failed to conduct required economic analysis

• $100M impact threshold was crossed, but FTC didnt follow proper procedure

Procedural deficiencies are fatal. Opponents of the rule

What You Can Still Do

Protect yourself from hard-to-cancel subscriptions:

Avoid debit cards Use credit cards for better protection
Read terms Uncheck pre-checked boxes
Set calendar reminders Cancel before auto-renew
Document everything Emails, screenshots, call notes
Report issues File complaints with your state attorney general

State laws may still apply under UDAAP authority or FTC Act lookalikes

What was the problem?

Just what was it that companies found objectionable about the rule, other than its benefits for consumers?

The rule was in the form of an amendment to the FTC's Negative Option Rule.Negative option is a term used to describe commercial transactions in which a service will continue unless the consumer take action to either cancel the agreement or reject the goods or services. The Click to Cancel ruleexpanded the coverage beyond pre-notification plans in which sellers send periodic notice offering goods or services to consumers and then charge them for the goods or services if they fail to affirmatively decline to all other forms of negative option marketing.

Under federal law, the FTC must issue a preliminary regulatory analysis when a proposed rule would have an annual effect on the national economy surpassing $100 million.The FTC said that the rule would not have an annual $100 million impact on the economy.However, an Administrative Law Judge found that the proposed rule would have an annual effect surpassing the $100 million threshold.

The companies challenging the rule jumped on that, meanwhile arguing that they of course meant no harm to consumers.

While we certainly do not endorse the use of unfair and deceptive practices in negative option marketing, the procedural deficiencies of the [FTCs] rulemaking process are fatal here, they said. And thus the Click to Cancel rule found itself canceled.

Self-defense measures still available

All is not lost, however. There are still ways consumers can control their destiny, at least when it comes to subscriptions. Here are some suggestions offered last October by Teresa Murray, Consumer Watchdog Director at Public Interest Research Group:

• Think twice about that free trial subscription.You almost always have to link a payment to sign up for something thats free. That can lead to problems if you dont cancel on time.

• Never use a debit card. Always use a credit card for a subscription ormembership. Debit cards link to your bank account. That can make it difficult to get your money back and can even lead to costly overdraft fees.If the company continues to charge you, you have far greater protections with a credit card than a debit card under the Fair Credit Billing Act.

• Read terms and conditions and watch out for pre-checked boxes. A lot of companies may, by default, check boxes that give them permission to charge you after the free trial expires or even sign you up for other products or services or unwanted marketing messages that flood your inbox or voicemail. Uncheck the boxes you dont agree with.

• Keep copies of emails or text messages sent to you when you signed up, and any screenshots of your efforts to cancel, or any notes from a phone call, including the name of who you spoke with.

• Put reminders in your calendar. If its a one-year subscription, schedule a calendar reminder for maybe a couple of weeks before the automatic renewal date, and again a few days ahead of time, and just cancel then. Dont wait until the last minute.

It all else fails, complainto your state attorney general. As noted above, there may be laws in your state that govern subscriptions.

Summer sandals may be stylish, but doctors say they can take a toll on circulation and leg health

• Flip flops offer little support, which can affect circulation and lead to leg and foot problems.

• Signs of poor vein health include swelling, fatigue, and visible veins in the legs.

• Supportive footwear, movement, and hydration are key to protecting your legs this summer.

Flip flops may be a go-to summer staple, but they could be doing more harm than good especially when it comes to your circulation.

While theyre great for the beach or quick errands, wearing them too often can put serious strain on your feet and legs, leading to issues that go far beyond sore arches.

To learn about the hidden risks of flip flops, whos most at risk, how to keep your legs healthy while still enjoying everything summer has to offer, and more, ConsumerAffairs spoke with Dr. Adria Ford, DO, from the Center for Vein Restoration.

Your vein health is part of your overall wellness, she said. Ignoring early signs of circulation problems can lead to more serious complications down the road.

Summer footwear choices may seem minor, but they play a big role in protecting the health of your legs.

The biggest health risks

Dr. Ford broke down some of the biggest concerns for consumers who often reach for their favorite flip flops or sandals:

• Poor circulation due to lack of calf muscle engagement

• Pooling of blood in the legs, which can lead to varicose veins or worsen existing ones

• Swelling, heaviness, and fatigue in the lower limbs

• Foot problems like plantar fasciitis, heel spurs, and toe injuries from altered walking patterns

• Increased risk of cuts, scrapes, or infections due to minimal foot protection

Flip flops dont provide the structure needed to activate the calf muscles, Dr. Ford said. And those muscles play a vital role in pumping blood back up toward the heart.

Notice the signs

If youre unsure how your footwear choice is affecting you, here are some of the signs to look out for:

• Leg swelling or ankle puffiness

• Visible varicose or spider veins

• A feeling of heaviness or fatigue in the legs

• Aching or throbbing sensations in the lower limbs

• Foot or leg pain after wearing flat footwear

• Skin discoloration, especially near the ankles

• Slow-healing sores or ulcers on the legs

Moderation is key

According to Dr. Ford, consumers dont have to throw out their flip flops. However, limiting wear time can be helpful.

Supportive shoes arent just about comfort, she said. Theyre about protecting your long-term vascular health.

She recommends that consumers opt for shoes that have arch and heel support, firm soles that encourage natural walking patterns, and secure straps to keep shoes in place without toe gripping. These types of shoes are ideal not only for everyday use, but also for any kind of vigorous or sustained activity.

Stay healthy this summer

For those with a personal history of vein disease, a family history of vein disease, pregnant women, elderly people, those with a history of leg injury or blood clots, overweight or obese people, or those who spend a lot of time standing or sitting, poor footwear may increase your risk of vein issues.

However, there are ways to stay healthy this summer. Heres Dr. Fords healthy summer checklist:

• Wear supportive sandals or shoes for daily use

• Stay active, and avoid standing or sitting too long without movement

• Stay hydrated to promote healthy blood flow

• Elevate your legs after long days to reduce swelling

• Use compression socks if advised by your doctor

• Check your legs regularly for signs of vein issues

Study reveals how liver disease is surging and the role alcohol plays

• Heavy drinkers today are over twice as likely as two decades ago to develop serious liver disease.

• The study analyzed national health data and defined heavy drinking as eight drinks per week for women and 15 drinks per week for men.

• Findings show rates of significant liver disease have skyrocketed, as have heavy drinking rates in key demographic groups.

Over the past 20 years, alcohol-related liver disease (ARLD) in the U.S. has surged dramatically more than doubling in frequency, according to researchers at USCs Keck Medicine.

With rising rates of heavy drinking and metabolic issues like obesity and diabetes, the liver is taking the hit, and this study highlights the biggest risks.

Alcohol-related liver disease is the main cause of liver-related death and these results are a major wakeup call to the dangers of drinking, researcher Brian P. Lee, M.D., MAS, said in a news release.

The study

To understand how alcohol-related liver disease has changed over time, researchers analyzed 20 years worth of data from the National Health and Nutrition Examination Survey (NHANES), which provides a snapshot of the health of adults across the U.S.

They focused specifically on people who met the criteria for heavy alcohol use, which is defined as drinking more than 15 drinks per week for men and more than eight for women.

They also looked at how alcohol-related liver disease trends varied based on age, gender, and race, as well as the presence of other health risks like obesity, high blood pressure, and type 2 diabetes.

The goal was to track the total increase in significant liver disease a stage of liver disease when the liver forms scar tissue that impairs liver function that is often caused by heavy drinking.

The results

Ultimately, the researchers found that significant liver disease is more prevalent today than it was two decades ago, and heavy drinking is likely the culprit.

The study uncovered four demographic groups that are drinking more than they were 20 years ago:

• Women

• Adults 45 and older

• Those living in poverty

• Those with metabolic conditions a group of conditions that increase the risk of heart disease, diabetes, etc.

Importantly, the study showed that drinking patterns across the U.S. hadnt changed dramatically before the COVID-19 pandemic.

Our results show that the makeup of the American public with heavy alcohol consumption has changed compared to 20 years ago, Dr. Lee said in the release.

Final takeaway

The researchers hope that these findings lead to improvements in the health care system, including earlier disease screenings and personalized care approaches for at-risk patients.

These findings the first comprehensive look at the demographics of heavy drinking and their relation to liver disease since the 1990s provide important new information about which population groups may need more intervention to curb alcohol use and may also explain the rise in liver disease over the years, said Dr. Lee in the news release.

Buyers are stymied by high prices, interest rates and lack of supply

• June home sales fell 2.7% month-over-month; unchanged from a year ago

• Median home price hit a record $435,300, up for the 24th consecutive month

• Inventory rose year-over-year, but affordability remains a key challenge

Sales of existing homes in the U.S. slipped in June as high mortgage rates and continued housing supply constraints put pressure on buyers, according to the National Association of REALTORS (NAR).

Total existing-home sales dropped 2.7% from May to a seasonally adjusted annual rate of 3.93 million. While that figure is unchanged compared to June 2024, it reflects the prolonged stagnation of the housing market amid affordability challenges. Sales declined in three of four major U.S. regions, with only the West seeing a modest uptick.

At the same time, the national median home price rose to a record $435,300 in June2% higher than one year agomarking the 24th straight month of annual price increases.

Regionally mixed performance

The Northeast experienced the sharpest month-over-month drop, down 8% to an annual rate of 460,000 homes. Sales also fell 4.2% from June 2024. The Midwest and South saw respective monthly decreases of 4% and 2.2%, though both recorded slight gains year-over-year. The West bucked the trend with a 1.4% increase in monthly sales, though that region remains down 4.1% compared to a year ago.

Inventory and market conditions

Housing inventory at the end of June stood at 1.53 million units, up 15.9% from a year earlier and representing a 4.7-month supply at the current sales pace. Thats a slight increase from May and a notable improvement from the 4-month supply in June 2024.

Properties typically remained on the market for 27 daysunchanged from May but longer than the 22-day average from a year ago. First-time buyers accounted for 30% of purchases, a modest improvement from 29% in June 2024.

Investor activity fell to its lowest level since September 2022, with individual investors or second-home buyers making up just 14% of transactions.

Yun: High prices reflect wealth gains but undersupply persists

NAR Chief Economist Lawrence Yun emphasized that while rising home values are building household wealth, they also highlight the deepening affordability crisis. The record high median home price underscores how American homeowners wealth continues to grow, Yun said. But multiple years of undersupply are driving these prices, holding back first-time buyers.

Yun pointed to long-standing underbuilding and population growth as the root causes. More supply is needed to increase the share of first-time homebuyers in the coming years, even though some markets appear to have a temporary oversupply at the moment, he added.

Quick Stats

• Single-family home sales:Down 3% month-over-month; median price $441,500

• Condo/co-op sales:Flat vs. May; median price $374,500

• Cash buyers:29% of all sales, up from 27% in May

• Distressed sales:3%, unchanged from last month

Mortgage rates remain a sticking point

The average 30-year fixed mortgage rate was 6.75% as of July 17, according to Freddie Mac. Thats down slightly from a year ago but still high enough to keep many potential buyers sidelined.

If rates were to fall to 6%, we estimate that an additional 160,000 renters could become first-time homeowners, Yun noted. He said a rate drop in the second half of 2025 could boost sales nationally, especially with continued income growth and a strong job market.

Lending Tree study finds 40% of $1,000+ loans were originated last year

By Truman Lewis of ConsumerAffairs

• 8.6% of U.S. auto loan holders now pay $1,000 or more per month on at least one vehicle loan.

• 40.3% of these costly loans were originated just last year in 2024.

• Texas leads the nation, with nearly 13% of borrowers carrying four-digit payments.

In a startling sign of financial strain and shifting consumer behavior, a new LendingTree analysis reveals that $1,000-plus monthly car payments are increasingly common in the U.S. The study, based on anonymized credit reports from roughly 180,000 Americans, found that 8.6% of auto loan holders were making at least one such high payment as of early 2025.

More strikingly, 40.3% of these large loans were originated in 2024, suggesting a recent acceleration in costly borrowing. With new vehicle prices nearing $50,000 and interest rates still elevated, more consumers are locking themselves into five- to six-year commitments for loans that stretch budgets and expose them to long-term financial risk.

While many high-payment borrowers likely have the income to manage, others may be walking a financial tightrope especially if job markets tighten or inflation persists.

Texas is ground zero for four-figure car loans

Though every state has seen a rise in high-dollar auto loans, Texas stands out: 12.8% of the states borrowers are paying $1,000 or more monthly, the highest percentage in the nation. Other high-ranking states include Nevada (11.9%), Wyoming and Georgia (11.6%), and large-car cultures like California and Florida, where at least 10% of auto borrowers carry four-figure payments.

Notably, many of these states are geographically large and car-dependent, where pickup trucks and SUVs dominate and public transit is limited outside major metros. Yet income levels vary widely a troubling indicator that some borrowers may be overextending themselves.

Northeast, Midwest see fewer jumbo auto loans

The lowest rates of $1,000 auto payments are concentrated in Northeastern and Midwestern states, where urban density and more modest vehicle preferences may play a role. Rhode Island (4.8%), Maine (5.1%), and Pennsylvania (5.2%) lead the bottom 10.

Interestingly, some of these lower-ranked states also have higher average household incomes, like Massachusetts and New Hampshire, suggesting that even high earners in these regions tend to borrow more conservatively for cars.

Whos driving the big bills?

• Gen Xers are the most likely to carry four-figure auto payments, with 10.8% making at least one such payment.

• Baby Boomers (8.6%) and Millennials (8.0%) follow, while Gen Z remains the least affected (3.2%).

• Borrowers with super-prime credit scores (720+) are more likely to have big car payments than those with poor credit, likely because lenders are more willing to extend large loans to creditworthy consumers.

The road ahead

With car prices still elevated and interest rates unlikely to drop quickly, $1,000 car payments may become a new normal for many Americans even though they were rare just a few years ago. The LendingTree data paints a cautionary tale: even as vehicle ownership remains essential in many parts of the country, the financial burden of getting behind the wheel is rising fast.