The Click to Cancel rule is supposed to make it as easy to cancel a subscription as it is to sign up for one.
The Federal Trade Commission’s “click to cancel” rule — which would have made it easier to cancel unwanted subscriptions — has been blocked by the US Eighth Circuit Court of Appeals. The rule was set to take effect on July 14.
“Click to cancel” would have required businesses to clearly disclose terms and obtain informed consent before charging for a subscription or membership. It would also have required companies to display when promotional offers or free trials would end and make it as easy to cancel your membership as it is to sign up for one.
The appeals court said that the FTC failed to conduct a preliminary regulatory analysis, which is required for rules that could impact the US economy by more than $1 million.
“While we certainly do not endorse the use of unfair and deceptive practices in negative option marketing, the procedural deficiencies of the Commission’s rulemaking process are fatal here,” the court’s ruling stated.
The court’s decision comes after a recent CNET survey found that subscribers are paying an average of $1,080 and wasting $200 per year on unwanted subscriptions. With the FTC rule shot down, it could make it harder for you to cancel unwanted subscriptions.
How to cancel unwanted subscriptions
Now that the rule is blocked, you may still have to jump through hoops to cancel some of your subscriptions since businesses aren’t required to offer clear ways to end a subscription. Pay close attention to your monthly subscriptions and memberships to ensure you aren’t paying for unused services.
You can identify unwanted subscriptions by combing through your bank account and credit card statements from the past month and looking for recurring charges. If you spot any unwanted subscriptions, log in to your service account and cancel or pause the service. If you’re struggling to find an option to cancel, call the service’s customer service phone number to end your account. In some cases, like with certain gym memberships, you may be required to cancel in person.
If that sounds like too much work, CNET Money editor Kelly Ernst has an easier solution. “The budgeting app I use, Rocket Money, can help you find subscriptions you’re not using and cancel them for you. It saved me $400 in 15 minutes.”
Rocket Money is CNET’s pick for best budgeting app, and it comes with both a free and a paid tier. You can have the app look for recurring subscriptions for free. If you’d like it to cancel on your behalf, you’ll need to sign up for the paid tier, which starts at just $6 a month.
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