A three-judge panel of the Eighth U.S. Circuit Court of Appeals on 8 July vacated the Federal Trade Commission’s “Click to Cancel” rule, only six days before it was due to take effect. The court concluded that the agency failed to perform a preliminary cost-benefit analysis, a step required when a regulation is expected to have an annual economic impact of more than $100 million. Adopted by a 3-2 vote in November 2024 under former FTC Chair Lina Khan, the rule would have compelled retailers, gyms, streaming services and other businesses to let consumers cancel subscriptions, auto-renewals and free trials through a mechanism at least as simple as the one used to sign up. It formed part of the Biden administration’s “Time is Money” initiative aimed at curbing so-called subscription traps. The lawsuit was brought by the U.S. Chamber of Commerce and industry groups including NCTA – The Internet & Television Association, whose members span Charter Communications, Comcast, Disney Entertainment and Warner Bros. Discovery. Business groups argued the measure would impose heavy compliance costs and exceeded the FTC’s statutory authority. Consumer advocates and several lawmakers condemned the ruling, saying it keeps burdensome cancellation processes in place. The FTC declined to comment on whether it will appeal or restart the rulemaking with the required economic analysis, while members of Congress signalled plans to introduce legislation that would enshrine similar protections.