Starting Thursday, it should be easier for New Yorkers to cancel a subscription they no longer use.
New York City’s “Click to Cancel” rule went into effect Oct. 1, giving the city the authority to crack down on businesses that make it difficult for consumers to cancel subscriptions.
The rule requires businesses to provide a straightforward way for consumers to cancel a subscription using the same method they used to sign up, according to the mayor’s office.
Companies must clearly explain subscription terms and disclose consumers’ rights when they purchase, enroll in or cancel a subscription. They also must provide an easy cancellation process, the Mamdani administration said in a release. Businesses also cannot require consumers to pay for shipping when returning items they gave them for free.
“No one should need 45 minutes of hold music to stop paying for something they never wanted,” Mamdani said in a statement Thursday. “New Yorkers work too hard for their money to have it drained by a subscription they can’t cancel. If a company can take your money with one click, you should be able to get your money back with one click. And now, if they won’t let you cancel, the city is coming for them.”
Businesses that violate the rule can face restitution and civil penalties starting at $525 per violation.
The city has also launched a new online complaint portal for New Yorkers to report businesses that make it difficult to cancel a subscription. They can also file complaints by mail or fax and check the status of a complaint using the complaint number they receive.
New York City is the first municipality in the country to implement a “Click to Cancel” rule, according to the city.