New York Mayor Mamdani says companies like Netflix will now pay if you can't cancel

New York City's Click-to-Cancel rule has officially come into effect, empowering the city to penalize businesses that make it difficult for customers to cancel subscriptions. Since October 1, the Department of Consumer and Worker Protection (DCWP) has been enforcing the rule, which applies to auto-renewing plans across various services, including subscription streaming platforms like Netflix, Amazon Prime, and Disney+, as well as gym memberships.

Companies found in violation of the rule could face civil penalties starting at $525 per violation, and may be required to refund affected customers. New York is the first US city to adopt such a rule, following a near-identical federal version that was struck down by the 8th Circuit Court of Appeals just days before it was set to take effect in July 2025. Critics argued that the federal rule lacked a preliminary regulatory analysis due to its projected $100 million annual economic impact.

Mayor Zohran Mamdani emphasized the rule's intent: "If a company can take your money with one click, you should be able to get your money back with one click." To ensure compliance, businesses must clearly explain subscription terms, disclose automatic renewals, and inform customers of any changes. Most importantly, cancelling must be as straightforward as signing up, whether the cancellation is initiated online or through other means.

The city has also launched a dedicated complaint portal at nyc.gov/click-to-cancel, built by the Office of Technology and Innovation's Public Interest Technology (PIT) Crew in just 10 weeks. The portal supports multiple languages and allows customers to track their complaints via a unique reference number. In many cases, a DCWP mediator will assist both the customer and the business in resolving the issue.

According to estimates from the Roosevelt Institute, the rule could potentially save New Yorkers between $21.5 million and $162.5 million annually. While the federal Click-to-Cancel rule was overturned in court, Mamdani, who previously advised Lina Khan, the FTC's former chair, remains committed to championing consumer rights. Despite the setback, complaints to the FTC about difficulty cancelling services have surged to nearly 70 per day in 2024, compared to 42 per day in 2021.

New York's adoption of the rule marks a significant step in enforcing these protections on its own, holding companies accountable in the nation's most populous city.