New York City Announces New 'Click-to-Cancel' Rule
Starting October 1, New York City residents will benefit from a rule requiring companies to offer simple subscription cancellations, with fines starting at $525 per violation.
New York City Mayor Mamdani has announced a new "Click-to-Cancel" rule, to be enforced by the city's Department of Consumer and Worker Protection. The rule takes effect on October 1 and requires businesses to provide a "simple, straightforward" process for canceling subscriptions. It prohibits companies from making sign-ups easy while forcing cancellations through complicated phone calls or other burdensome methods.
The rule applies to automatic renewal and continuous service subscriptions. Companies must clearly disclose subscription terms to customers. They also cannot require payment for returning any free item given as part of the subscription. Violations will result in restitution to consumers and penalties starting at $525 per violation.
The rule applies to New York City residents and overlaps with New York State laws governing cancellation notices and renewal offers. It is paired with a proposed junk fees rule, which will open for public comment on August 7. That rule aims to prevent hidden mandatory fees by requiring upfront disclosure of the full price.
Mayor Mamdani campaigned on eliminating corporate exploitation, and former FTC Chair Lina Khan, who served as one of his transition co-chairs, also focused on junk fees. The FTC's national click-to-cancel rule collapsed in July 2025 after the commission was reshaped by President Donald Trump and the Eighth Circuit Court of Appeals vacated the rule. Currently, click-to-cancel protections exist in states including Utah, Idaho, California, Massachusetts, Georgia, Minnesota, Colorado, Illinois, and Arkansas.
