The "click-to-cancel" rule, which would have forced businesses to make it easier for consumers to cancel subscriptions, was blocked by a federal court days before it was set to take effect, the Associated Press reports.
The Federal Trade Commission (FTC) pitched the new rule as a way to simplify the process of canceling a subscription, which can get tricky after free trials or limited-time offers expire and auto-renewals kick in.
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“Too often, businesses make people jump through endless hoops just to cancel a subscription,” Commission Chair Lina M. Khan shared on the FTC’s website. “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”
But with the federal court’s ruling, consumers hoping for a simpler unsubscribe process may have to wait.
Why ‘click-to-cancel’ was canceled
The U.S. Court of Appeals for the Eighth Circuit halted the rollout of the rule, stating that the FTC failed to conduct a preliminary regulatory analysis, which is required for new regulations expected to have an annual economic impact of more than $100 million.
The FTC argued that such analysis wasn’t necessary because it estimated the rule would fall below that $100 million threshold. But a judge reportedly disagreed, saying the impact would likely exceed that amount.
Meanwhile, subscription fatigue is real — and expensive. According to CNET, the average American spends $1,080 per year on subscriptions while wasting $200 annually on subscriptions they don’t use. These stats show how subscription creep can quietly drain your budget.
Tennessee state Rep. Bob Freeman, who introduced a bill in his state to make it easier to cancel subscriptions, discovered two years ago that his daughter had signed up for several subscriptions with introductory rates. And since she wasn’t canceling the subscriptions when the initial offer expired, Freeman started getting charged full price for several app subscriptions he didn’t recognize.
To cancel, Freeman had to email the company to schedule a follow-up call, during which the representative would try to talk him into keeping the subscription.
“It was clear it was not meant for convenience,” said Freeman. “It was clear it was predatory.”
Tennessee now has a state law that requires companies to give consumers notice of automatic renewals, and several other states have followed suit. However, the federal "click-to-cancel" rule would have standardized those protections nationwide, ensuring that — regardless of where you live — canceling a subscription would be as easy as signing up.
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How to avoid paying for unwanted subscriptions
With click-to-cancel no longer taking effect nationwide, the burden of managing subscriptions remains on consumers. If you’re worried about paying for subscriptions you no longer use, here’s how to take control and avoid unwanted charges.
Set a calendar reminder for free trials
Before starting a free trial, ensure that you understand the terms and conditions, including the renewal details. Many subscriptions offer an “introductory” rate that is cheaper than the renewal rate. Do yourself a favor and set a reminder on your phone or in your calendar a few days before the trial ends. That gives you a few days to decide if the app is worth keeping and take action if it is not.
Use a service to manage/cancel subscriptions
Several budgeting apps, such as Rocket Money and Trim, can help you track subscriptions and flag charges you may not recognize. They can also cancel those subscriptions or request a discount on your behalf. While these services require a payment, you may find it’s less than you’re wasting on subscriptions.
Watch out for sneaky auto-renewals
Some subscriptions renew annually and may only provide a short window for cancellation. Always check the fine print and consider canceling shortly after signing up to avoid a surprise charge next year. If you find you use the subscription, you can always renew.
Cancel in the app store or on your device
If you signed up for an app through Apple’s App Store or Google Play, use those platforms to cancel your subscription. They often offer a more straightforward cancellation process than visiting the business’s website.
Review your statements regularly
Make it a habit to review charges on your credit or debit card monthly. Look for small, recurring charges, especially from companies you don’t recognize. Remember that the billing name may differ from the app or service that you signed up for.
Recurring charges can quietly add up, but with a little organization and awareness, you can keep your subscription budget in check even without a federal rule forcing companies to make it easier.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
