The fight over 'click to cancel' isn't over

You can subscribe to almost anything with just a click these days — wine clubs, pet food, therapy, underwear, the list is endless. Unsubscribing? That's tougher.Why it matters: The difficulty of unsubscribing — finding out where and how to do it, calling customer service, navigating last-chance promotional offers — costs people time and money. It's a boon for the many firms that see a revenue boost from keeping people on the monthly hook. A federal court just handed those firms a huge win.State of play: Last week a federal appeals court blocked a Federal Trade Commission rule that was meant to change the process. The so-called Click to Cancel rule was set to take effect on Monday, and would've have required companies to make it as easy to cancel a subscription as it is to sign up for one.Catch up quick: A three-judge panel at the Eighth Circuit Court of Appeals ruled that the FTC made a procedural error in promulgating the rule.As a result businesses didn't get enough "substantive consideration" in the rule-making process, said the judges — two Trump appointees and one judge appointed by George H.W. Bush. Former FTC chair Lina Khan blasted the decision in an interview with Axios last Thursday. "We were exhaustive in our rulemaking process," she said, noting it took over two years. "We reviewed over 16,000 comments. Industry asked for hearings, so we gave them further opportunity to weigh in and share their views." "The idea that, as the Court suggested, that somehow industry didn't have enough opportunity to comment and weigh in strikes me as fairly ludicrous."The other side: Companies that rely on subscription revenue celebrated. The Health & Fitness Association, which represents gyms and was a party to the suit, thanked the court in a statement. Gyms have long been the poster child for making it hard to cancel a membership.For the record: The FTC hasn't commented on the Click to Cancel ruling, and didn't respond to Axios' request for comment.The big picture: The subscription economy has seen big growth over the past decade — one study estimated 400% growth — as companies have come up with new ways to keep customers paying their monthly bills.There are now services that help consumers find and cancel subscriptions. Guess how they work? Yep, you subscribe to them.By the numbers: In a recent study, economists at Stanford University signed up for subscriptions at 47 newspapers and tried to cancel them. Though every paper allowed online signup, 26 required you to cancel by phone, a process that took more than ten minutes at seven outlets.16 of the 21 papers that allowed for online cancellation bogged the process down with "sludge," surveys that asked why they were canceling or promotional offers that had to be clicked through, etc.In a separate paper, economists found that adding friction to the unsubscribe process raises revenues for companies anywhere between 14% to more than 200%.What they're saying: "People are paying for many months of subscriptions that they no longer value. That allows companies that don't perhaps have a viable business model to continue bringing in money," said Stanford economist Neale Mahoney, who co-authored those papers.What's next: The FTC has three options here — it could appeal the ruling, start a new process to correct the procedural mistake the court flagged, or walk away. Congress could also step in. On Thursday, Sen. Ruben Gallego (D-Ariz.) introduced a bill that would codify Click to Cancel. And a bipartisan group of senators are planning to reintroduce a bill that would require companies to be more transparent about subscriptions, according to a press release seen by Axios. The bottom line: Unsubscribing is hard — and getting companies to make it easier is also proving difficult.

Comments

World news

Husband in ‘failed murder-for-hire plot involving fentanyl-laced chocolate’ reveals hitman warned him about ex’s scheme

Independent

Comments

World news

Husband in ‘failed murder-for-hire plot involving fentanyl-laced chocolate’ reveals hitman warned him about ex’s scheme

‘He’s in good shape’: Trump backs Dan Bongino after his feud with Pam Bondi over Epstein Files

Extreme heatwaves across Spain caused more than 1,000 deaths

Daughter’s heartbreaking message to Mexican mother over ICE raids

Urgent search for Briton who went missing on solo hike in Italy

Young Democrat wants cognitive tests for aging members of Congress

California professor accused of assault after he was ‘kidnapped’ during ICE protests at cannabis farm raid

‘Laughing Stock’ NY Post brutally mocked for claiming Trump received ‘huge applause’ at FIFA Club World Cup final

An armed man dressed in a bikini storms a donut shop – but staff fight back

Moment police find $3m worth of drugs in suitcase at Atlanta airport

I’m in PR – Gregg Wallace is a spectacular lesson in how not to handle a crisis

Constance Marten and Mark Gordon found guilty of manslaughter of their baby

Infantino celebrates Club World Cup - but how much of the globe was watching?

Over 1,400 tarantulas found hidden in cake boxes in German smuggling bust

Military says over 1,000 people flown from fire-threatened Manitoba community

What is the Patriot missile system the U.S. plans to send to Ukraine?

In Lunenburg, N.S., boatbuilders carve out niche markets in challenging times

Bitcoin sets new record as crypto markets expect Trump to ease regulations

New additions coming to Guelph’s HART Hub this summer

Police arrest former associate of Montreal billionaire Robert Miller

Gaza death toll nears 60,000 as Israelis demand Netanyahu strikes Hamas hostage deal

Air India crash mystery in full from medical record probe to chilling fuel theory

Engine fire aboard WestJet flight arriving at Vancouver quickly doused

Arizona wildfire destroys historic Grand Canyon lodge and force thousands of evacuations: Live updates

Gunman in deadly Kentucky church shooting identified as aspiring local rapper with serious criminal history

Stop Suaalii: How the Lions can combat Australia’s £5m superstar

America Can’t Lead in AI by Firing All the Experts

I’m a pension campaigner. The triple lock should stay until it hits £340 a week

German customs show tarantulas hidden in spongecake boxes after smuggling bust

Kosovo fighter's sentence cut despite court upholding convictions for murder, torture

House Democrats are trying to force the Trump administration to release the Epstein files

New Medicaid work rules put states in a bind

The fight over 'click to cancel' isn't over

Nine dead and dozens more in hospital after huge fire breaks out at Massachusetts assisted living home

Paper-eating beetles threaten 100,000 books at country’s oldest library

Airport roof collapses as Spain hit by powerful earthquake

Controversial video showing Jeffrey Epstein’s cell door before his death was ‘modified,’ report finds

World’s oldest president eyes eighth term - at the age of 92

Hacker uses Elmo’s X account to post antisemitic messages and tweet that reads: ‘RELEASE THE FILES’

The cosmetics billionaire, the rock star, and a series of very mysterious property deals in prime Palm Beach

BBC breached editorial guidelines on controversial Gaza documentary, corporation says

Texas floods mapped: Here are the affected areas as death toll rises

Trump jokes about signing executive order to change soccer to football

Iranian president Masoud Pezeshkian injured during Israel’s attacks

Linda Yaccarino ‘lasted two years in a job that would have crushed most in two weeks,’ X insider says

German backpacker speaks out after being found alive in Australian outback

Why are so many plane crashes happening in 2025? Key incidents, causes and aviation safety concerns

Spain earthquake: Everything we know about the tremor which rocked tourist hotspot

British hiker Matthew Hall, 33, missing in Italy after trip to Alps

We should be in a golden age for sleep

Scientists are trekking into the heart of a hurricane disaster zone — to save these rare creatures

Will we ever know why Bryan Kohberger murdered the Idaho Four?

Trump’s biggest downfall is his need to be loved

Chelsea could sue Mudryk if he’s guilty – and face a PSR nightmare

Where it will be hottest this week – and if ‘fourth heatwave’ could hit

I am gripped by horror as US democracy disappears over a political cliff

Every Spanish holiday hotspot hit by floods – and what it means for your trip

The Couple Next Door season 2 cast, filming locations and episode guide

A Murdoch insider tells us what he got wrong

Bonnie Blue’s porn stunts make me feel old, but I know I’m right