New York City enforces 'click to cancel' subscription rule
by@CNBC
Summary
New York City has implemented a new "click to cancel" subscription rule, designed to simplify the process for consumers wishing to terminate automatically renewing subscriptions. This regulation, which took effect on Thursday, strengthens existing state laws that already require cancellation methods to be as straightforward as the sign-up process. Mayor Zohran Kwame Mamdani emphasized that if businesses can easily take money from consumers, they should also be able to return it with equal ease. This initiative follows a growing trend among U.S. states that have enacted similar laws, reflecting increasing regulatory scrutiny on hard-to-cancel subscriptions amid heightened consumer complaints over such practices.
Analysis
Gonzalo Mon: Gonzalo Mon is a partner at the law firm Kelley Drye & Warren in Washington, specializing in consumer protection and subscription regulations. He commented on the growing trend of state-level automatic renewal laws and noted that such rules typically focus on disclosure, consent, and easy cancellation options. Mon expects continued state-level activity on the issue amid ongoing federal developments. New York City: New York City is the largest city in the United States and a major economic hub that sets local consumer protection policies. As of October 2026, it has become the first municipality to implement a click-to-cancel rule requiring businesses to simplify cancellation of automatically renewing subscriptions. The measure, effective Thursday, provides a local enforcement mechanism and complaint portal alongside New York state's existing protections. Zohran Kwame Mamdani: Zohran Kwame Mamdani serves as the mayor of New York City and leads local initiatives on consumer rights and affordability. In a news release on the rule's effective date, he highlighted the principle that canceling a subscription should be as simple as signing up. His administration positions the policy as a response to consumer complaints about hard-to-cancel services. Regulation: More than half of U.S. states have enacted rules governing automatic subscription renewals, generally requiring upfront disclosures, consent, and straightforward cancellation methods. Legislation: Bipartisan legislation such as the Unsubscribe Act remains pending in Congress to establish national standards for easy subscription cancellations. Federal Developments: The FTC has continued enforcement actions against companies for difficult-to-cancel subscriptions under existing laws while seeking public input on updating its Negative Options Rule.
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