Netflix Cancellations ‘Not So Easy’ Anymore!  Here’s What’s Changing

July 14, 2025: Netflix Cancellations – A federal appeals court has nullified the Federal Trade Commission’s (FTC) proposed “click-to-cancel” rule—designed to make subscription cancellations as easy as sign-ups—just days before it was scheduled to take effect on July 14, 2025. The rule targeted friction-filled cancellation processes used by major streaming platforms like Netflix, Prime Video, Disney+, and HBO Max.

The Eighth Circuit Court of Appeals ruled that the FTC failed to conduct the mandatory preliminary regulatory economic analysis, required for any rule with an expected economic impact above $100 million. This procedural lapse rendered the rule legally invalid.

What the Rule Entailed

The canceled regulation included provisions to:

• Make cancellation processes as simple as enrollment
• Provide upfront transparency on trial expirations and pricing
• Secure explicit consent before switching from free trials to paid subscriptions.

Why This Matters

With the rule blocked, companies face no mandate to maintain easy cancellation options. Experts predict a quick shift toward more convoluted procedures, such as:

• Additional steps or screens
• Burying cancellation options deep in menu settings
• Requiring customer service calls for termination .

Average U.S. households now shell out roughly $61/month on streaming alone—a figure that could rise further if cancellation becomes cumbersome.

What Caused the Court’s Decision

The court’s rejection was based purely on procedural grounds—not the rule’s intent. Judges noted that the FTC underestimated the rule’s financial impact initially, and failed to update its economic analysis when later revealed to exceed $100 million.

One judge noted: “While we certainly do not endorse the use of unfair and deceptive practices… the procedural deficiencies… are fatal here.”

What Comes Next?

• The FTC may appeal to the U.S. Supreme Court, with a decision possibly by October 2025.
• Reissuing the rule would require a complete restart of the rulemaking process—it may not occur until late 2026 or beyond.
• Some U.S. states (e.g. California) have already implemented their own “click-to-cancel” laws, unaffected by this ruling.
• Absent federal regulation, consumers may have to rely on private lawsuits or existing state and federal consumer protection laws.

Consumer Takeaways

• Don’t expect change soon: Cancellation processes can legally become more complex.
• Act cautiously when signing up: Carefully review auto-renewal terms and trial expiration dates.
• Monitor state laws: Some regions may still require simple cancellation.
• Stay informed: Watch for potential FTC appeals or new state-level protections.

This ruling marks a major setback to President Biden’s consumer-rights initiative, which aimed to curb manipulative billing practices and protect digital subscribers.