A Court Ruling Killed ‘Click to Cancel.’ NYC Just Brought It Back
A website allows New Yorkers to submit complaints about hard-to-cancel subscriptions.
After an appeals court effectively nullified a nationwide regulation in 2024, New York City has reinstated a "click to cancel" rule for its residents. Announced by Mayor Zohran Mamdani alongside the city's top tech officer and consumer protection commissioner, the rule mandates that companies make it as easy to cancel subscriptions as signing up.
This applies to gym memberships, phone contracts, and apps with monthly fees. The law, enacted via executive order in January, took effect on October 1. Mayor Mamdani emphasized that customers shouldn't have to endure lengthy hold music to stop paying for unwanted services, stating that if a company can charge someone with one click, they should be able to cancel with one click.
A complaint website allows New Yorkers to file issues related to canceled subscriptions, providing details, supporting documentation, and desired outcomes, such as refunding the subscription and cancellation. Samuel Levine, commissioner of New York City's Department of Consumer and Worker Protection, stated that dedicated staff will handle these complaints, ensuring personal assistance rather than automated responses.
Businesses found in violation may face fines of up to $525 per violation. Emily Peterson-Cassin, director of competition and market fairness at the Consumer Federation of America, noted that NYC's law demonstrates how local governments can protect consumers when federal agencies fail to act. California, Maryland, and Colorado have also implemented subscription cancellation rules, although they differ in specifics.
The FTC is reportedly considering a similar policy, but the agency has not yet provided an update on the matter.
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