Credit: DisneyA proposed change to subscription-based services has been struck down.
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A “click-to-cancel” rule has been blocked by a federal appeals court days before it was set to go into effect, according to the Orlando Sentinel. This change would have required subscription-based businesses to make it easier for subscribers to cancel their memberships.
The Federal Trade Commission’s proposed changes were adopted back in October. At the time, the FTC also said that businesses would have to disclose when free trials end and give customers a chance to cancel subscriptions as easily as they initiated them.
The change required businesses to ensure a customer’s consent before updating membership details, such as auto-renewals and pricing updates.
This change would have applied to all kinds of businesses, such as streaming services like Netflix, Prime Video, and Disney+. It’s not so much that canceling or changing membership status on these apps is “difficult,” but it can certainly be cumbersome and confusing. The current Disney+ cancellation process is as follows:
- Log in to your Disney+ account through a computer or mobile browser
- Select your Profile
- Select Account
- Select your Disney+ subscription under Subscription
- Select Cancel Subscription
However, with the connection of other streaming platforms and services like ESPN and Hulu, ensuring you aren’t charged by another party can be tricky.
Gym memberships have been a shining example of cumbersome cancellation requirements for decades, sometimes forcing members to meet with a front desk employee in-person to cancel their plan.
Despite showing up later than some of its peers, Disney+ has become a giant in the streaming industry. Disney ended Q1 2025 with over 125 million subscribers, a little less than Netflix’s 301 million the company saw at the end of 2024.
A huge part of Disney+’s success can be attributed to its wide collection of films, shows, and other content. Not only does Disney+ offer classic animated fairytale stories, it also serves as the home for blockbusting franchises like Star Wars and the Marvel Cinematic Universe.
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The new rule was set to go into effect Monday, July 14, 2025, but the U.S. Court of Appeals for the Eight Circuit stated the FTC made a procedural error. The court of appeals claims this error caused the FTC to fail to come up with a preliminary regulatory analysis, which is required for rules that impact the U.S. economy at a value over $100 million annually.
An administrative judge decided that the economic impact would be more than the $100 million threshold.
“While we certainly do not endorse the use of unfair and deceptive practices in negative option marketing, the procedural deficiencies of the Commission’s rulemaking process are fatal here,” the court wrote.
What are your thoughts on this update? Do you use Netflix, Hulu, or Disney+?