Writer: Lucy Lazarony
Editor: Adam West
Reviewer: Ashley Fricker
Key Takeaways
- New York City’s Click-to-Cancel rule takes effect Oct. 1, with penalties starting at $525 per violation.
- Businesses must offer easier cancellations, although banks and several other regulated providers are exempt.
- New Yorkers can report subscription-cancellation problems through several channels beginning Oct. 1.
New York City’s “Click-to-Cancel” rule takes effect Oct. 1, making it easier for New Yorkers to end many automatically renewing and continuous-service subscriptions.
“In our city, we’re drawing a clear line: If you can sign up with a click, you must be able to cancel with one,” said New York City Mayor Zohran Mamdani.
The Roosevelt Institute estimates that the rule could save New York City adults between $21.5 million and $162.5 million per year, along with at least 600,000 hours.
Click-to-Cancel Penalties Escalate Quickly
Source: New York City Department of Consumer and Worker Protection
Also starting Oct. 1, New Yorkers will be able to file complaints about businesses that make subscriptions difficult to cancel.
The targets of the rule are businesses that force customers through confusing and time-consuming hurdles when they are trying to end subscriptions, according to a New York City website.
The New York City Department of Consumer and Worker Protection will enforce the rule. Businesses that violate it may face civil penalties starting at $525 per violation and may be required to refund charges collected after a consumer’s first cancellation attempt.
What the 'Click-to-Cancel' Rule Covers
Here’s a closer look at what the “Click-to-Cancel” rule covers in New York City.
To begin with, businesses must clearly explain their subscription terms. They must also clearly disclose consumers’ rights when they purchase or cancel subscriptions.
Businesses must provide a straightforward cancellation process that is as easy to use as the signup process and available through the same method. For example, a consumer who subscribes online must be allowed to cancel online.
Businesses also may not obstruct or unreasonably delay cancellation requests. That includes hanging up on consumers who call to cancel, providing false information about the cancellation process, or imposing unreasonable conditions before accepting a cancellation.
“In our city, we’re drawing a clear line: If you can sign up with a click, you must be able to cancel with one.” — Zohran Mamdani, Mayor of New York City
The rule includes additional notification requirements for certain subscriptions. Businesses must provide advance notice of some long-term renewals, material changes and price increases. They must also send reminders before certain free trials lasting longer than one month convert to paid subscriptions.
If a business sends consumers products they did not agree to receive through an automatic renewal or continuous-service arrangement, those products are considered unconditional gifts. The business cannot require consumers to return the products or pay the return shipping costs.
The rule does not apply to every business. Exemptions include banks, credit unions, certain other financial institutions, entities regulated by the New York State Department of Financial Services, licensed security alarm operators and certain service-contract providers.
New Yorkers Can Report Cancellation Problems
Beginning Oct. 1, New Yorkers will be able to file complaints online, through 311, or by phone, mail or fax.
In 2025, the department received more than 100 consumer complaints related to the difficulty of canceling subscriptions.
There are several reasons consumers may wish to file a complaint. If a business failed to explain the terms of a subscription or made the subscription difficult to cancel, a consumer may have grounds for one.
For example, if you signed up for a subscription online but were required to cancel by phone or in person, you may be able to file a complaint.
Starting Oct. 1, New Yorkers can file complaints under the "Click-to-Cancel" rule.
You may also have grounds for a complaint if a business delayed your cancellation, failed to disclose an automatic renewal, or did not notify you about changes to your subscription terms.
Consumers may also report businesses that sent products they did not request and expected them to return the products or pay for them.
The department will review complaints and any supporting documents consumers provide. In some cases, a mediator may contact the business and consumer to try to resolve the dispute.
How the NYC Rule Builds on State Law
Several states, including Arkansas, California, Colorado, Georgia, Idaho, Illinois, Massachusetts, Minnesota and Utah, have passed laws giving consumers the right to cancel subscriptions through a process similar to the one used to enroll.
New York already has laws addressing subscription cancellations. Health clubs must accept online membership cancellations if they allow consumers to enter membership contracts online.
State law also requires businesses offering automatic renewals or continuous services to clearly present their terms, obtain consumers’ affirmative consent and provide a cancellation mechanism that is as easy to use as the enrollment process.
New York City’s rule builds on those protections by expanding the required cancellation methods and establishing specific restitution and civil-penalty provisions.
