The U.S. government’s attempt to force companies to stop playing hide-and-seek with cancellation buttons has just been thrown into limbo.
A federal appeals court in St. Louis has hit pause on a new Federal Trade Commission rule that would’ve required businesses to make subscription cancellations just as painless as sign-ups. The rule—unveiled under the watch of former FTC Chair Lina Khan—was supposed to roll out July 14, but now sits in regulatory purgatory.
According to the 8th Circuit Court of Appeals, the FTC skipped a crucial step: a preliminary cost-benefit analysis. Without that analysis, the court said, the rule can’t move forward.
This rule would have stopped the runaround many consumers face—where signing up takes seconds but canceling involves endless chatbot loops or phone trees. Businesses ranging from gyms to streaming services to retail subscriptions were set to be affected.
The legal resistance is being spearheaded by the U.S. Chamber of Commerce and a powerful coalition of industry groups. Heavy hitters in cable, internet, and entertainment—including Charter, Comcast, Cox, Disney, and Warner Bros. Discovery—are in the fight to keep the rule off the books.
The FTC, for now, is staying quiet.
As things stand, cancelling your gym membership may remain more exhausting than your actual workout.
