Tuesday, July 8, 2025

Recent Supreme Court Decisions

“Laws are like cobwebs, which may catch small flies, but let wasps and hornets break through.
― Jonathan Swift


A federal rule designed to make canceling subscriptions as easy as signing up for them has been struck down by a US federal appeals court just days before it was scheduled to take effect.
The US court of appeals for the eighth circuit vacated the Federal Trade Commission’s “click-to-cancel” rule, which would have required companies to allow consumers to cancel subscriptions using the same method they used to sign up, after finding that the commission behind it failed to follow required procedures under the FTC Act during the rule-making process.

“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, adding that “vacatur of the entire Rule is appropriate in this case because of the prejudice suffered by Petitioners as a result of the Commission’s procedural error”.

The vacated rule meant to go into effect on 14 July would have covered all forms of negative option marketing – programs that allow sellers to interpret customer inaction as acceptance of subscriptions, often leading to unintended charges. The FTC’s original 1973 rule only covered limited forms of these practices.

It would have also stopped businesses from forcing customers through lengthy chat sessions with agents or creating other barriers to cancellation.

by Joseph Gedeon, The Guardian | Read more:
Image: filadendron/Getty Image
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Justices lift lower court order that froze ‘reductions in force’ federal layoffs while litigation in case proceeded.

The US supreme court has cleared the way for Donald Trump’s administration to resume plans for mass firings of federal workers that critics warn could threaten critical government services.

Extending a winning streak for the US president, the justices on Tuesday lifted a lower court order that had frozen sweeping federal layoffs known as “reductions in force” while litigation in the case proceeds.

The decision could result in hundreds of thousands of job losses at the departments of agriculture, commerce, health and human services, state, treasury, veterans affairs and other agencies. (...)

Illston had argued in her ruling that Trump had exceeded his authority in ordering the downsizing, siding with a group of unions, non-profits and local governments that challenged the administration. “As history demonstrates, the president may broadly restructure federal agencies only when authorized by Congress,” she wrote.

The judge blocked the agencies from carrying out mass layoffs and limited their ability to cut or overhaul federal programmes. Illston also ordered the reinstatement of workers who had lost their jobs, though she delayed implementing this portion of her ruling while the appeals process plays out.

Illston’s ruling was the broadest of its kind against the government overhaul pursued by Trump and Doge. Tens of thousands of federal workers have been fired, have left their jobs via deferred resignation programmes or have been placed on leave.

The administration had previously challenged Illston’s order at the San Francisco-based ninth US circuit court of appeals but lost in a 2-1 ruling on 30 May. That prompted the justice department to make an emergency request to the supreme court, contending that controlling the personnel of federal agencies “lies at the heartland” of the president’s executive branch authority. (...)

On Tuesday the Democracy Forward coalition condemned the supreme court for intervening in what it called Trump’s unlawful reorganisation of the federal government. It said in a statement: “Today’s decision has dealt a serious blow to our democracy and puts services that the American people rely on in grave jeopardy.

“This decision does not change the simple and clear fact that reorganizing government functions and laying off federal workers en masse haphazardly without any congressional approval is not allowed by our Constitution.”

by David Smith, The Guardian | Read more:
Image: Anadolu/Getty Images