A US federal appeals court has blocked a proposed consumer protection rule that aimed to make canceling streaming subscriptions easier — a move that could indirectly affect viewers in the UAE and beyond.
The now-halted rule, known as “click to cancel,” was introduced by the US Federal Trade Commission (FTC) to require streaming platforms such as Netflix, Amazon Prime Video, Disney+, and HBO Max to offer a straightforward cancellation process, mirroring how easy it is to subscribe. It also sought clearer disclosures around free trials converting into paid plans and when promotional pricing would end.
Originally scheduled to take effect on July 14, the rule was shelved after the court ruled that the FTC failed to carry out a required economic impact analysis. This procedural misstep has indefinitely delayed implementation.
Despite the setback, the FTC is pressing forward in its crackdown on platforms with convoluted subscription practices. One notable case is its ongoing legal battle with Amazon, which is accused of making it overly difficult for users to cancel their Prime memberships — often requiring multiple steps and screens.
While the ruling has no direct effect on regulations in the UAE, its implications may still ripple through international streaming operations, especially as many platforms follow the policies of their US headquarters.
With streaming services booming in the UAE, many consumers juggle multiple subscriptions. Without user-friendly cancellation options, managing these services could become more burdensome — potentially leading to unwanted charges and frustration.
Currently, there is no equivalent regulation in the UAE that mandates easy cancellation procedures. While local laws encourage transparency, enforcement can be inconsistent.