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US Court nullifies FTC requirement for click-to-cancel
FTC failed to follow rulemaking process required by US law, judges rule.
A three-judge panel ruled unanimously that the Biden-era FTC, then led by Chair Lina Khan, failed to follow the full rulemaking process required under US law. Summarizing the FTC's arguments, judges said the agency contended that US law "did not require the Commission to conduct the preliminary regulatory analysis later in the rulemaking process," and that "any alleged error was harmless because the NPRM addressed alternatives to the proposed amendments to the 1973 [Negative Option] Rule and analyzed record-keeping and compliance costs." At the time of the vote, Holyoak's dissenting statement accused the majority of hurrying to finalize the rule before the November 2024 election and warned that the new regulation "may not survive legal challenge."
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