FTC’s “Click-to-Cancel” Rule Dead in the Water

A U.S. appeals court has blocked the rule that would have made it as easy to cancel services as it was to sign up for them in the first place.

This means some companies will still make you call in and suffer through multiple line transfers before you can cancel a service you signed up for with a few clicks.

The rule would have made it much easier to cancel things like gym memberships, streaming services, and even plans for internet and cell phone service.

It had been set to take effect on July 14 after being passed by the U.S. Federal Trade Commission (FTC) in October of 2024. At the time, the FTC was run by Democratic Chair Lina Khan, and the agency reported receiving an average of 70 complaints a day about difficulty canceling unwanted subscriptions.

Industry groups sued, including the Electronic Security Association and NCTA, which represents major telecoms including Charter Communications (which owns Spectrum), Comcast (which owns Xfinity), Cox Communications, Disney Entertainment, and Warner Bros. Discovery. The associations were joined by the U.S. Chamber of Commerce.

In all, petitioners sued in four federal circuit courts. Their complaints were consolidated for review by the U.S. Court of Appeals for the 8th Circuit. On July 9, the court granted the requests to vacate the rule, saying the FTC hadn’t met the requirement to conduct a preliminary regulatory analysis.

What to say when you call to cancel

When you call to cancel any service—whether it’s your home internet subscription or that fashion magazine your teenager signed up for—it’s likely you’ll be transferred to someone who specializes in customer retention.

First, they’ll insist on knowing why you want to cancel, but be careful. Unless you’re trying to get a discounted rate, just tell them, “I don’t want the service,” over and over again.

They may offer discounted rates, free-trial periods of upgraded services, or even mislead you about whether you’re allowed to cancel. They may also try to scare you about the negative effects of switching to a competitor or use overly technical language to confuse you.

Be firm, and don’t entertain offers. If it comes down to it, you can even say, “I’m moving out of the country” or “I’m selling the property,” until the agent stops making offers. Eventually, they will process your cancellation—likely at the end of your billing cycle.

Don’t forget to check your accounts

Once you’re finally off the phone, two more steps are required: Check your online login with that service to make sure the cancellation was processed. Then, check your bank account at the end of the billing period to make sure any payments have stopped.

You should probably check your finances for unwanted debits weekly or monthly, of course, but definitely do it anytime you’re canceling something you signed up for online.