Fact Check: The FTC's proposed subscription cancellation rule would impact the economy by over $100 million.

Fact Check: "The FTC's proposed subscription cancellation rule would impact the economy by over $100 million."

What We Know

The Federal Trade Commission (FTC) proposed a "click-to-cancel" rule aimed at simplifying the cancellation process for subscriptions. This rule was intended to require businesses to make it as easy to cancel subscriptions as it is to sign up for them. The FTC's initial assessment suggested that the economic impact of this rule would not exceed $100 million, which meant they believed a preliminary regulatory analysis was unnecessary. However, an administrative law judge later determined that the economic impact would indeed surpass the $100 million threshold, necessitating such an analysis (source-1, source-2).

On July 14, 2025, the U.S. Court of Appeals for the 8th Circuit blocked the implementation of the rule, citing procedural errors by the FTC, including the failure to conduct the required preliminary regulatory analysis (source-1, source-4). The court emphasized that the procedural deficiencies were "fatal" to the rule's enactment (source-1).

Analysis

The claim that the FTC's proposed subscription cancellation rule would impact the economy by over $100 million is substantiated by the court's findings. The administrative law judge's assessment indicated that the economic effects of the rule would exceed this threshold, which is a critical factor in regulatory analysis. The court's decision to vacate the rule was based on the FTC's failure to comply with necessary procedural requirements, specifically the lack of a preliminary regulatory analysis, which is mandated when the annual economic impact is projected to exceed $100 million (source-2, source-6).

The reliability of the sources used in this analysis is strong, as they include reports from reputable news organizations and legal analyses. These sources provide consistent information regarding the procedural errors identified by the court and the implications of the FTC's initial assessments. The court's ruling underscores the importance of regulatory compliance and the potential economic ramifications of consumer protection rules.

Conclusion

Verdict: True
The claim that the FTC's proposed subscription cancellation rule would impact the economy by over $100 million is accurate. The court's ruling confirmed that the economic effects of the rule were significant enough to require a preliminary regulatory analysis, which the FTC failed to conduct. This procedural oversight ultimately led to the rule's blockage, reinforcing the claim's validity.

Fact Check: The FTC's proposed subscription cancellation rule would impact the economy by over $100 million.