New York City’s Click-to-cancel Subscription Rule Takes Effect
Businesses must make subscriptions as easy to cancel as they are to start, while residents can use a new city portal to report problems.
New York City’s click-to-cancel rule took effect on October 1, requiring businesses to make ending a subscription as easy as starting one. Residents can also use a new city portal to report companies that make cancellation difficult. According to The Verge, New York is the first US municipality where such a rule has taken effect.
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What businesses must change
A company that allows customers to subscribe online cannot require them to call or visit in person to cancel, The Verge reports. Engadget says businesses must offer a straightforward cancellation process through the same method used to sign up. They must also clearly explain subscription terms and disclose customers’ rights when buying or canceling a subscription.
The rule addresses practices that can keep charges recurring after a customer has decided to leave. Engadget reports that businesses cannot require customers to return items they originally received for free. Under the rule, a simple online sign-up must not lead to a more complicated process when the customer wants to stop paying.
Complaints, refunds and penalties
Residents can file complaints through a new portal if a business makes cancellation difficult or delays it. The Verge says the portal also accepts complaints about unclear subscription terms or a failure to disclose automatic renewal. The city’s Department of Consumer and Worker Protection will review submissions and may seek more information, help customers cancel, or try to recover their money. A pattern of complaints could lead to further investigation and legal action.
Businesses may face civil penalties starting at $525 per violation. Refunds are possible, but neither outlet reports that customers will receive them automatically. The Verge says the city estimates the rule could save New Yorkers between $21.5 million and $162.5 million each year; that figure is a projection, not a measured result.
The Verge reports that the mayor’s Public Interest Technology Crew built the complaint portal in 10 weeks. Department commissioner Samuel Levine told the outlet that people, rather than an automated chatbot process, will handle complaints. The portal’s launch gives residents a way to bring individual cancellation problems to the agency responsible for enforcing the rule.
How the city rule fits the broader debate
New York City’s action follows an unsuccessful federal click-to-cancel effort. The Verge says an appeals court struck down the federal version over procedural issues and that the current Federal Trade Commission has taken an initial step toward potentially restoring a similar rule. Engadget describes the federal plan as having been killed by the court and the FTC under President Donald Trump. Both outlets report that the city rule is now in force, while broader federal protections are not.
Sources
This story was compiled by AI from the reports below. Read the originals for the full details.