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What happened to the FTC click-to-cancel rule?
In October 2024, NCTA–The Internet & Television Association, the Interactive Advertising Bureau (IAB), and the Electronic Security Association (ESA) petitioned for review of the Federal Trade Commission’s 2024 Negative Option Rule. Although they initially filed in the Fifth Circuit, the case was transferred to the Eighth Circuit. That court granted the petition and vacated the rule on July 8, 2025, according to the FTC’s December 2025 litigation status report.
That means the headline’s Fifth Circuit reference describes where the challenge began, not the court that ultimately decided it. The FTC’s report identifies the case as Fifth Circuit No. 24-60542 and Eighth Circuit No. 24-3442.
Is the FTC click-to-cancel rule in effect?
The FTC’s 2024 rule was vacated by the Eighth Circuit and should not be described as currently operative. The agency subsequently began a separate process to consider changes: it published a notice on February 12, 2026, concerning revisions to conform the rule to court decisions, then issued an advance notice on March 13, 2026, seeking comment on possible amendments. The FTC’s Negative Option Rule page collects rulemaking materials; the March notice is a request for comment, not evidence that a new final rule is in effect. The sources available through that notice do not establish the later outcome of the rulemaking.
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Why did cable and advertising groups challenge the rule?
The petitioners argued that the rule was arbitrary and capricious, unsupported by substantial evidence, beyond the FTC’s statutory authority, and unconstitutional. They also challenged its disclosure and consent provisions, limits on communications with customers, and cancellation requirements. These were the petitioners’ claims, not findings by the court.
NCTA CEO Michael Powell argued that customers could misunderstand the consequences of cancellation and might need to hear about alternatives. IAB said the rule would constrain innovation and companies’ ability to adapt their offerings. Those positions were reported by Ars Technica in October 2024. The court’s reported disposition was to grant the petition and vacate the rule; it should not be recast as adopting every argument the petitioners made.
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- Affirmative consent: Obtain unambiguously affirmative consent before enrolling a customer.
- Simple cancellation: Provide a simple way to cancel that immediately stops recurring charges.
These describe what the 2024 rule would have required; they are not a statement of current obligations under that vacated rule. The FTC’s 2024 final-rule text sets out the provisions and the agency’s stated authority.
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Case timeline
- October 23, 2024: ESA, IAB, and NCTA petitioned for review in the Fifth Circuit, according to the FTC.
- November 22, 2024: The case was transferred to the Eighth Circuit.
- June 10, 2025: The Eighth Circuit heard oral argument.
- July 8, 2025: The Eighth Circuit granted the petition and vacated the rule.
- February 12, 2026: The FTC published a notice concerning revisions to conform the rule to court decisions.
- March 13, 2026: The FTC sought comment on possible amendments through an advance notice.
The case dates and outcome are from the FTC’s December 2025 litigation status report; the later steps are reflected in the agency’s rulemaking materials and its March 13, 2026 advance notice.
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