FTC Commissioner Slaughter Returns, Immediately Pushes to Reinstate Vacated "Click to Cancel" Rule

Rebecca Kelly Slaughter has returned to her position as a Federal Trade Commission (FTC) Commissioner following a court ruling that reversed her attempted removal by former President Donald Trump. Upon her reinstatement on Wednesday, Commissioner Slaughter immediately announced her intention to reinstitute the "Click to Cancel Rule," a consumer protection measure aimed at combating abusive subscription practices. She expressed hope that a majority of the Commission would support her efforts.

Slaughter's return to the FTC follows a significant legal battle. The D.C. Circuit Court of Appeals lifted a stay on a lower court decision, affirming that a president cannot remove independent agency commissioners, such as those at the FTC, without cause. This ruling underscores the congressionally intended independence of the agency and allowed Slaughter to resume her duties.

The "Click to Cancel Rule" was initially finalized by the FTC in October 2024, designed to make it as easy for consumers to cancel recurring subscriptions as it was to sign up. The rule sought to prohibit businesses from misrepresenting material facts, require clear disclosures before billing, and mandate informed consent for negative option features. It was a response to thousands of consumer complaints regarding difficult cancellation processes.

However, an appeals court later vacated the rule before its scheduled implementation, citing procedural requirements that were not met. This legal setback meant the rule, which aimed to protect consumers from "abusive subscription traps," did not take effect as planned. Slaughter's move to reinstitute it signals a renewed push for its implementation and enforcement.

The effort to revive the rule highlights ongoing debates within the FTC regarding consumer protection and regulatory authority. Commissioner Slaughter's swift action upon her return underscores her commitment to safeguarding Americans from predatory business practices, particularly in the digital economy where recurring payment models are prevalent. Her success in reinstituting the rule will depend on securing majority support from the Commission.