New Regulations on Subscription Cancellations Face Legal and Bureaucratic Hurdles
A proposed FTC rule aimed at making it easier for consumers to cancel subscriptions and memberships has been blocked by a federal appeals court due to procedural errors, just before its scheduled implementation. The rule would have required clear disclosures and easy cancellation processes for auto-renewals and free trials, but the court found the FTC failed to conduct a necessary preliminary economic impact analysis. The FTC is also preparing for a trial against Amazon over alleged unenforceable Prime enrollments.