New York City Implements Click-to-Cancel Rule for Subscription Services

New York City has implemented a "click-to-cancel" rule requiring subscription-based businesses to make the cancellation process as simple as the sign-up process. The rule took effect in October 2026 and applies to all companies offering recurring subscriptions to New York City residents.

Under the new rule, if a consumer can sign up for a service online, they must be able to cancel it online through a single, clearly labeled mechanism. Businesses cannot require customers to call a phone number, send a letter, or navigate multiple screens to cancel.

The city joins California, Virginia, and several other states that have enacted similar consumer protection measures in recent years. The Federal Trade Commission also finalized a national click-to-cancel rule in 2024, though enforcement has been uneven.

New York City's Department of Consumer and Worker Protection will handle complaints and enforcement. Businesses that violate the rule face fines starting at $500 per violation.

Consumer advocates praised the move. "Subscription traps are one of the most common complaints we hear from New Yorkers," said Samir Patel, director of the New York Public Interest Research Group. "This rule puts the power back in the hands of consumers."

The rule covers a wide range of services, including streaming platforms, gym memberships, software subscriptions, and meal delivery services. It does not apply to contracts that require a minimum term, such as annual leases or multi-year service agreements.

Industry groups representing subscription businesses said they support transparency but raised concerns about the compliance burden for smaller companies. They have asked the city for a 90-day grace period for businesses to update their cancellation systems.