The court held that procedural errors in the rule’s adoption necessitated vacatur of the entire rule.

SUMMARY

On July 8, 2025, the 8th Circuit Court of Appeals (Court) released an Opinion vacating the entire Click-to-Cancel Rule. The Court held that the Federal Trade Commission (FTC) failed to follow the procedural requirements under the FTC Act necessary to legally adopt the Rule. Specifically, the requirement that the FTC prepare a preliminary regulatory analysis and solicit public comments for rules that have an economic impact exceeding $100 million. The Court stated that “[w]hen required, a preliminary regulatory analysis must include a description of reasonable alternatives to the proposed rule, a cost-benefit analysis and each alternative in achieving the Commission’s stated objectives in promulgating the rule.” Due to the FTC’s failure to prepare one, the Court vacated the Rule entirely.

WHAT IMPACTS ARE ANTICIPATED

Compliance with the Click-to-Cancel rule is no longer required until the FTC cures its procedural deficiencies and issues a new rule. However, the FTC may choose not to re-issue the rule.

NEXT STEPS & VANTAGE POINT ASSISTANCE

Vantage Point Solutions (VPS) will monitor the situation and provide updates regarding the Click-to-Cancel Rule.