What just happened? New York City's click-to-cancel policy has taken effect, meaning Big Apple consumers won't be forced to endure arduous subscription cancellation processes that encourage people to give up. The rule also means customers must be able to cancel using the same method they used to sign up, so there's no having to spend ages on the phone with an aggressive customer retention agent.
Mayor Zohran Mamdani and the Department of Consumer and Worker Protection (DCWP) originally announced the city's final Click-to-Cancel Rule in July. It took effect on October 1, making New York the first US city to impose this type of requirement at the municipal level.
In a post explaining the rule, the city notes that many businesses force their customers through confusing, time-consuming hurdles to cancel unwanted subscriptions.
Thanks to the click-to-cancel rule, companies must clearly explain subscription terms to customers, disclose consumers' rights when buying or cancelling subscriptions, provide a straightforward cancellation process using the same method as sign up, and can't ask that customers pay to ship them things the businesses gave them for free.
– NYC Office of Technology and Innovation (@NYCOfficeofTech) October 1, 2026
The regulation applies to automatically renewing and continuous-service subscriptions, such as streaming services, gym memberships, subscription boxes, and free trials that convert to paid plans.
Before requesting payment details or consent, businesses must clearly explain the price, billing frequency, renewal terms, cancellation deadline, and available cancellation methods.
"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," wrote Mayor Zohran Mamdani.
The rule will be enforced by the Department of Consumer and Worker Protection.
Violations may result in restitution and civil penalties of $525 for a first offense, $1,050 for a second, and $3,500 for subsequent offenses. The city estimates the rule could save residents between $21.5 million and $162.5 million a year.
Anyone who feels a company isn't adhering to these rules and is making canceling a subscription akin to getting an audience with the pope can fill out a complaint form.
The FTC approved a nationwide click-to-cancel rule in 2024, but delayed enforcement in May 2025. Two months later, a federal appeals court vacated the rule because the agency had failed to complete a required preliminary economic analysis.
The FTC reopened the rulemaking process in March 2026, with public comments closing on April 13. Its latest regulatory agenda scheduled staff review of those comments for July, but the agency has yet to announce a replacement rule.
While the rule is expected to affect gyms more than any other business, Amazon has faced plenty of scrutiny over its subscription cancellations. In September 2025, it agreed to pay $2.5 billion to settle FTC allegations that it misled customers into joining Prime and made leaving unnecessarily difficult. The settlement included a $1 billion penalty and $1.5 billion in refunds, along with requirements for clear consent and accessible cancellation. Amazon admitted no wrongdoing and said it had already simplified the cancellation process.
