The FTC's 'click to cancel' rule was thrown out, and consumers are mad
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A federal appeals court strikes down FTC rule that would have forced companies to offer easy online cancellations.
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Consumers share horror stories of hidden fees, endless phone calls, and opaque processes to quit subscriptions.
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Lawmakers may face pressure to act as subscription traps remain a widespreadand profitabletactic.
For countless consumers, trying to cancel a subscription remains a frustrating, time-consuming ordeal and now it may stay that way for the foreseeable future. The U.S. Court of Appeals for the Eighth Circuit has vacated the Federal Trade Commissions click-to-cancel rule, dashing hopes for a streamlined, one-click way to escape recurring charges.
The court, in a 2-1 decision, ruled that the FTC overstepped its authority, finding the rule represented a significant expansion of the Commissions rulemaking powers without explicit congressional authorization. The FTCs rule, finalized in March 2024, would have forced businesses to allow consumers to cancel subscriptions through the same easy online channels they used to sign up, without hurdles like retention calls or buried web pages.
Instead, consumers remain stuck in digital mazes, as highlighted by numerous personal stories shared with The Guardian newspaper. From streaming services to gym memberships, the tales paint a grim picture of companies exploiting complicated systems to keep charging people who want out.
A behemoth worthy of a takedown
Chris Cooper, of Pennsylvania, found himself locked in a dispute with Verizon over canceling home internet. After being stonewalled, he was offered $500 but only if he signed a confidentiality agreement. Verizon is a behemoth, whose intentionally complex and restrictive practices are worthy of a takedown, he said. He refused the hush money, determined to keep pushing for change.
Other consumers discovered theyd accidentally signed up for subscriptions buried in fine print. Kaja in New York booked a flight through Kayak, only to be enrolled in a subscription service from eDreams without realizing it. Even after supposedly canceling, she saw fees deducted from her account a year later.
Ella in San Diego, California, has been struggling to cancel her daughters Roblox subscription. The only way to get out of these things is to change cards, she vented. Very infuriating!
Jacob, a government worker in Washington state, described quitting services like Netflix, Amazon, and Tinder as a tangled process of hidden links, extra steps, and ongoing billing cycles. My life is better now, he said after finally cutting ties.
Aggressive retention tactics
Subscription traps extend beyond the digital world. Rob, a software engineer in Virginia, tried to end his pest control contract. Even after sending a formal letter, the company insisted he call the service center and sent field employees to his home unannounced.
Pamela, a retiree in Los Angeles, fought the Burbank YMCA after it doubled her membership fees without notice. The YMCA debited her bank account for months until she physically camped out in their office and refused to leave without a refund.
Some stories highlight emotional tolls as well. Kathleen, 68, from Washington, DC, said her attempts to cancel Hulu involved hours on the phone and condescending staff. I presume I can finally cancel when Im dead, she said.
What next?
For now, the collapse of the FTCs rule means companies are free to keep complicated cancellation processes in place, although consumers do have a few options.
One technique that a ConsumerAffairs reporter has used for years focuses on the payment method, usually a credit card. His very simple email reads:
You are billing me $xx.xxon a monthly basis. If this is a purported subscription for a product, it is hereby canceled and your authorization to charge my credit cardis hereby revoked. Further charges will be denied and chargebacks will be initiated. Thank you.
While this is by no means foolproof and may simply be ignored by many companies, our colleague says that he has found it "remarkably successful, assuming you can somehow get someone to read it."
With many companies excusing themselves from being responsive by simply stating that their mailbox is "not monitored," a dedicated consumer can usually find an email address. The CEO is ideal and can usually be found in the "About Us" section of most companies' websites.
If you're sufficiently steamed, you can also write to the attorney general in your state and claim that you were deceived into thinking that the subscription could be canceled at will. The AG may take it up with the company, although it's by no means certain these days, since many of them have joinedthe ideology wars and forgotten about the consumers who elected them.
Posted: 2025-07-16 16:51:18