New York City adopts 'click-to-cancel' rule to curb subscription traps

click-to-cancel subscription traps New York City junk fees consumer protection

Mayor Zohran Mamdani announced that New York City will require businesses to let consumers cancel subscriptions as easily as they sign up. The "click‑to‑cancel" rule, slated to take effect on Oct. 1, 2026, applies to automatic‑renewal services and mandates clear disclosure of terms. Violations could incur civil penalties starting at $525 per breach.

The city estimates the measures could save residents between $21.5 million and $162.5 million annually by eliminating unwanted charges and hidden "junk fees." A companion proposal would force firms to list full prices, including mandatory fees, up front. Enforcement will be handled by the Department of Consumer and Worker Protection, led by Commissioner Samuel Levine.

Mamdani said, "If you can sign up with one click, you can cancel with one click," while former FTC Chair Lina Khan added, "Nobody should be trapped in subscriptions they can’t escape." The municipal rule follows a federal "click‑to‑cancel" initiative that was struck down by a court in 2025.

Sources

Mamdani's New Click-to-Cancel Rule Makes It Easier for New Yorkers to Cancel Subscriptions [gizmodo.com]

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Mamdani unveils 'click-to-cancel' rule targeting subscription traps [americanbazaaronline.com]

14 days ago

New York City to ban firms from using subscription traps, officials say [wsau.com]

16 days ago

A little law gives hope that government can suck less and make people’s lives better [www.motherjones.com]

14 days ago