New York City Becomes First U.S. Municipality to Enforce Click-to-Cancel Subscription Rule
As of October 1, New York City has become the first city in America to enforce a click-to-cancel subscription rule aimed at protecting consumers from deceptive recurring billing practices. The regulation requires businesses to make it as easy for customers to cancel subscriptions as they were to sign up—such as allowing online cancellations if that's how users joined. This move follows the invalidation of a similar federal version by an appeals court due to procedural issues. The New York City Department of Consumer and Worker Protection (DCWP) estimates this rule could save residents between $21.5 million and $162.5 million annually. Commissioner Samuel Levine, who previously led consumer protection efforts at the FTC under Lina Khan, emphasized that local governments can now step in where federal action has stalled or failed. A new city-run portal allows consumers to file complaints about subscription issues like unclear terms or delayed cancellations. The DCWP will review these and may assist with refunds or cancellation support. Businesses found noncompliant could face fines starting at $525 per violation.
Topics: consumer_rights government_policy subscription_services