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NYC's 'Click-to-Cancel' rule goes into effect, requiring companies to make cancelling subscriptions as easy as signing up

The first-in-the-nation municipal rule requires businesses to let consumers cancel as easily as they sign up and sets penalties starting at $525.

  • On Thursday, New York City became the first municipality to enact a "click-to-cancel" rule, requiring businesses to make subscription cancellations as simple as signing up.
  • Mayor Zohran Kwame Mamdani introduced the mandate after federal attempts failed; the Eighth Circuit Court of Appeals struck down a national version last year, leaving a regulatory gap.
  • Businesses must provide clear cancellation pathways or face civil penalties ranging from $525 to $3,500 per violation, according to Commissioner Samuel Levine of the NYC Department of Consumer and Worker Protection .
  • The city launched a complaint portal developed by the mayor's Public Interest Technology Crew in just 10 weeks, enabling residents to report noncompliant companies and seek refunds.
  • Officials expect the rule to save New Yorkers between $21.5 million and $162.5 million annually, protecting consumers from subscription "tricks and traps" through aggressive enforcement.
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New York City has implemented ‘Click-to-Cancel’ regulations to streamline the cancellation process for subscription services. It mandates guaranteeing online cancellation upon online sign-up and clearly notifying subscribers of subscription terms and renewal options. Companies that violate these regulations face civil penalties, while consumers are expected to save up to 220 billion won annually.

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NY Daily News broke the news in Jersey City, United States on Monday, September 28, 2026.
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