New York City Click-to-Cancel Rule Takes Effect, Requiring Businesses to Make Subscriptions Easy to End

New York City began enforcing a new "click-to-cancel" rule on October 1, 2026, requiring businesses to make it as easy to cancel a subscription as it was to sign up for one.

The rule, adopted by the NYC Department of Consumer and Worker Protection, is the first of its kind for a U.S. municipality. It targets what officials call "subscription traps," where businesses use confusing or obstructive processes to prevent consumers from ending unwanted services.

Under the rule, if a consumer signed up online, they must be able to cancel online. Businesses offering in-person enrollments, such as gyms or retail memberships, must also provide an online cancellation option. Companies cannot hang up on callers, hide cancellation links, or force consumers through multiple unnecessary steps.

Civil penalties start at $525 for a first violation, $1,050 for a second, and $3,500 for a third or subsequent violation. Businesses may also be required to refund consumers for charges incurred after their first documented attempt to cancel.

The NYC Department of Consumer and Worker Protection has set up a dedicated online portal at nyc.gov/click-to-cancel where consumers can report violations and track the status of their complaints.

Certain entities are exempt from the rule, including banks, credit unions, entities regulated by the New York Department of Financial Services, and licensed security alarm operators.

The rule complements existing New York state laws on automatic renewals but establishes a distinct municipal enforcement regime with its own penalties and complaint process.