NYC Launches Nation’s First Municipal Click-to-Cancel Rule

New York City has introduced the nation's first Click-to-Cancel rule, making it the first municipality to take such action, according to a press release from the Office of the Mayor. This new rule empowers the city to take action against businesses that make it challenging for consumers to cancel subscriptions. Businesses that fail to comply with the rule may face penalties, starting at $525 per violation.

The city has also launched an online complaint portal to help residents report potential violations and seek assistance. Violations can include failing to clearly explain subscription terms, making cancellation difficult, delaying cancellations, sending unwanted products, not notifying customers of subscription changes, or not disclosing automatic renewals.

Mayor Zohran Mamdani signed Executive Order 10 on January 5, directing the Department of Consumer and Worker Protection to consider rules to prevent deceptive subscription practices. Mamdani emphasized that consumers should be able to cancel subscriptions with a single click, just as they can make purchases. Although New York state already has a click-to-cancel rule, the new NYC rule allows for local enforcement.

Over half of U.S. states have laws governing auto-renewing subscriptions, and the Federal Trade Commission finalized a national click-to-cancel rule in October 2024, though it was later vacated on procedural grounds in July 2025. The Unsubscribe Act (H.R. 7048) was reintroduced in January to protect consumers from misleading subscription plans, as reported by PYMNTS.