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US Court blocks “Click‑to‑Cancel” rule; Cancelling Netflix, Prime Video subscription could soon be a hassle
With a key FTC consumer-protection measure struck down, streaming platforms like Netflix, Amazon Prime Video, Disney+ are no longer obligated to maintain frictionless cancellation processes.
OTTs like Netflix and Prime Video may reintroduce friction into cancellation flows, affecting U.S. users and possibly rippling globally. (Image source: unspalsh)
In a landmark decision, the U.S. Court of Appeals has struck down the Federal Trade Commission’s (FTC) “click‑to‑cancel” rule, which was designed to simplify subscription cancellations by requiring digital services to offer cancellation methods as easy as the sign-up process.
The rule had been set to go live on July 14, 2025, but judges found that the FTC failed to complete a required economic impact analysis for regulations projected to exceed $100 million in annual effect, rendering the rule procedurally flawed. This regulation was part of the Joe Biden administration’s broader consumer protection agenda, aimed at reducing digital friction and ensuring fair treatment in online services.
Supporters argued that such transparency would reduce negative-option marketing traps that lock consumers into recurring charges.
With the rule struck down, streaming platforms like Netflix, Amazon Prime Video, Disney+, and HBO Max are no longer obligated to maintain frictionless cancellation processes.
Though most currently allow straightforward opt-outs, services could choose to reintroduce hoops such as hidden settings, multi-page flows, or phone-based cancellations to reduce churn and boost revenue.
The ruling also carries global implications. Streaming giants tend to standardize subscription experiences worldwide. If they alter cancellation protocols in response to the U.S. court decision, users in countries like India, where consumer regulation and enforcement vary, could also see more cumbersome procedures.
SPOTLIGHT
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