New York City Implements Click-to-Cancel Rule for Subscriptions

Beginning October 1, residents of New York City will benefit from a new Click-to-Cancel rule designed to simplify the process of ending subscriptions. Mayor Mamdani announced that the city's Department of Consumer and Worker Protection will enforce this regulation, which mandates companies to offer clear and straightforward cancellation options for automatic renewal and continuous service subscriptions.

The rule prohibits businesses from making subscription cancellations difficult by requiring convoluted procedures such as phone calls or other complex methods. Instead, companies must allow consumers to cancel subscriptions through a simple online click process. This initiative fulfills campaign promises and revives a Federal Trade Commission (FTC) proposal originally introduced under former Chair Lina Khan but abandoned last year.

According to the Mayor's statement, the rule also obliges companies to disclose subscription terms transparently to customers. Additionally, it forbids charging customers for returning items provided free as part of a subscription. Violations of the rule will result in restitution to consumers and penalties starting at $525 per violation.

While the Click-to-Cancel rule specifically targets New York City residents, the Department of Consumer and Worker Protection highlighted that it complements existing New York State laws governing cancellation notices and automatic renewal subscriptions. This alignment aims to strengthen consumer protections within the state.

In conjunction with the Click-to-Cancel rule, New York plans to introduce a proposed junk fees rule, which will be open for public comment starting August 7. This proposed regulation seeks to prevent hidden mandatory fees by requiring companies to display the full price of their products upfront. Mayor Mamdani emphasized eliminating corporate exploitation as a key campaign goal, a focus shared by Lina Khan during her tenure as FTC Chair. Notably, Khan served as one of Mamdani's transition co-chairs.

The FTC's attempt to implement a national Click-to-Cancel rule was halted in July 2025 after the commission was restructured under President Donald Trump and the Eight Circuit Court of Appeals vacated the rule. Currently, click-to-cancel protections remain active in states including Utah, Idaho, California, Massachusetts, Georgia, Minnesota, Colorado, Illinois, and Arkansas.