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NYC's "Click-to-Cancel" rule takes effect Oct. 1 — first municipal rule of its kind in the US
Starting Oct. 1, New York City businesses must make cancelling a subscription as easy as signing up, with fines from $525 per violation plus restitution. NYC is the first US municipality to enforce a click-to-cancel rule.
Why it matters
Starting October 1, any gym membership, streaming service or auto-renewing subscription you joined online in a couple of clicks in New York City must be just as easy to cancel. Businesses that build a "cancellation maze" — forcing customers to sit on hold for 45 minutes, send a letter by mail or show up in person — face civil penalties starting at $525 per violation plus restitution to consumers. New York City is the first municipality in the United States to enforce a click-to-cancel rule.
Full report
The rule stems from Executive Order 10, signed by Mayor Zohran Mamdani on January 5, which directed the Department of Consumer and Worker Protection (DCWP) to draft the regulation. It applies to automatic-renewal and continuous-service subscriptions, requiring businesses to clearly disclose subscription terms, disclose automatic renewal, and offer a cancellation process as straightforward as the sign-up.
To make reporting easy, the administration launched a dedicated online complaint portal, built in ten weeks by the Mayor's Public Interest Technology Crew and staffed by real people rather than AI chatbots. DCWP Commissioner Samuel Levine said violations include hiding terms, delaying cancellations and failing to disclose auto-renewal. The Roosevelt Institute estimates the rule could save New Yorkers between $21.5 million and $162.5 million a year. New York State already has a click-to-cancel rule; the city's version enables local enforcement.
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