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NYC is first US city with 'click-to-cancel' subscription rule

NYC is first US city with 'click-to-cancel' subscription rule

Rule Changes

Rule took effect Oct. 1, 2026; complaint portal is live; fines start at $525 per violation

3 days ago: Click-to-cancel rule takes effect; complaint portal launches

Overview

Updated 1 hour ago

As of Thursday, any business selling a subscription in New York City must let customers cancel it as easily as they signed up. A gym that takes online sign-ups can no longer force a phone call or in-person visit to quit.

New York is the first US city with such a rule. The Department of Consumer and Worker Protection can now fine violators starting at $525 and seek refunds, and New Yorkers can file complaints at nyc.gov/click-to-cancel.

Why it matters

Any subscription sold in New York City now costs as much effort to quit as to join, and repeat offenders face fines and forced refunds.

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Key Indicators

$525
Minimum fine per violation
Civil penalties start at $525 per violation, plus possible restitution to consumers.
$162.5M
Estimated annual savings for New Yorkers
Roosevelt Institute estimate of what the rule could save consumers each year.
70/day
Daily FTC complaints about hard-to-cancel subscriptions
2024 national average, up from 42 per day in 2021.
1st
Municipality with a click-to-cancel rule
First US city to mandate cancellation as easy as sign-up.
10 weeks
Time to build complaint portal
The city's Public Interest Technology Crew built the online portal in 10 weeks.

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People Involved

Organizations Involved

Timeline

October 2024 October 2026

5 events Latest: 3 days ago
Tap a bar to jump to that date
  1. NYC adopts final click-to-cancel rule

    Regulation

    The city adopted the first municipal click-to-cancel rule, set to take effect October 1, 2026.

  2. Mayor Mamdani signs Executive Order 10

    Executive Action

    The order directed DCWP to prioritize enforcement against deceptive subscription practices and consider new rules to stop them.

  3. FTC finalizes national click-to-cancel rule

    Regulation

    The FTC finalized its national click-to-cancel rule under the Biden administration, targeting hard-to-cancel subscriptions.

Scenarios

1

DCWP announces first major click-to-cancel fine

Likely Resolves by Apr 1, 2027

Discussed by: NYC Mayor's Office; consumer advocates quoted by CNBC

The complaint portal fills with reports, DCWP mediators resolve individual cases, and a pattern of noncompliance at a large company triggers a formal action. The first public fine or court filing against a named national business becomes the rule's test case.

2

Businesses comply before enforcement, complaints decline

Possible Resolves by Oct 1, 2027

Discussed by: Kelley Drye & Warren partner Gonzalo Mon (CNBC)

National firms standardize cancellation flows to avoid fines, making the rule mostly self-enforcing. Complaints through the city portal taper as companies fix their sign-up and cancel flows preemptively.

3

FTC revives national click-to-cancel rule

Possible Resolves by Oct 1, 2027

Discussed by: Gonzalo Mon (Kelley Drye & Warren)

The FTC updates its decades-old Negative Options Rule after the public comment period closed in April 2026, creating a national standard that eclipses the municipal rule for companies operating nationwide.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

October 2024 – July 2025

FTC click-to-cancel rule vacated (2025)

The FTC finalized a national click-to-cancel rule in October 2024. Business groups including the U.S. Chamber of Commerce and the National Federation of Independent Businesses sued, and the Eighth Circuit vacated the rule on procedural grounds in July 2025 before it took effect.

Then

The national rule never went into force, leaving enforcement to individual states.

Now

With the federal path blocked, states and cities began filling the gap on their own.

Why this matters now

NYC's municipal rule is the direct response to the federal vacuum, making it a test case for whether local enforcement can substitute for a national standard.

1973

FTC Negative Option Rule (1973)

The FTC issued its original Negative Option Rule to govern 'book-of-the-month club' style offers, where consumers automatically received goods unless they actively cancelled. The rule required clear disclosures and a defined cancellation path.

Then

It established the federal framework for how subscription clubs could operate.

Now

The approach was later extended and updated to address digital subscriptions, which is what the click-to-cancel movement modernizes.

Why this matters now

The same consumer-protection logic behind the 1973 rule, cancellation must be straightforward, is now being applied at the local level to digital subscriptions.

Sources

(6)