New York City's click-to-cancel rule takes effect, making subscription cancellations as easy as sign-ups

Key Points:

• New York City has implemented a new click-to-cancel policy effective October 1, requiring companies to allow consumers to cancel subscriptions as easily as they signed up, eliminating complicated cancellation processes.
• The rule mandates clear disclosure of subscription terms, cancellation rights, and requires cancellations to be possible via the same method used for sign-up, covering automatic renewals, gym memberships, streaming services, and free trial conversions.
• Violations of the policy can result in fines ranging from $525 for a first offense up to $3,500 for subsequent offenses, with the city estimating potential savings for residents between $21.5 million and $162.5 million annually.
• The Department of Consumer and Worker Protection will enforce the rule, and consumers can file complaints if companies do not comply with the new cancellation requirements.
• While the FTC approved a similar nationwide click-to-cancel rule in 2024, enforcement was delayed and later vacated by a federal court; the agency is currently reviewing public comments to potentially introduce a new rule.