The FTC rule of Biden-era to “Click-to-Cancel” was blocked around the 11th hour, since the provisional analysis is not carried out

The changes to the Federal Trade Commission adopted in October asked companies to obtain the approval of a customer before they were calculated for memberships. Automatic newcomers And programs associated with free test offers.

At the time, the FTC said that companies also have to disclose when free attempts or other advertising offers end and recurring recurring subscriptions can be canceled as simply as they started.

President Joe Biden’s administration contained the FTC’s proposal as part of his Initiative “Time is money”A state -wide initiative that was announced last year with the aim of working together on consumer problems.

The FTC rule should come into force on Monday, but the US Court of Appeal for the Eighth circuit said this week that the FTC made a procedural error by not inventing a preliminary regulatory analysis that is necessary for rules, whose annual effects on the US economy are more than 100 million US dollars.

The FTC claimed that it does not have to develop a preliminary regulatory analysis because it initially found that the effects of the rule on the economy would be fewer than 100 million US dollars. An administrative judge decided that the economic effects would be more than 100 million dollars.

The court decided to clear the rule.

“Although we certainly do not support the use of unfair and misleading practices in the negative option marketing, the procedural deficiencies of the Commission’s provisions are fatal here,” wrote the court.

The FTC refused to comment on Wednesday.

The agency is currently making ahead with its preparations for A Attempt include The main program of Amazon. The attempt is based on A lawsuit by the Federal Trade Commission This accuses Amazon Consumers in their prime program without registering their consent and making it difficult for them to cancel their subscriptions.

The attempt is expected to take place next year.