● Covered by 2 sources · 2 reportsMedium impact1 neutral1 positive
NYC Implements Click-to-Cancel Rule for Subscriptions, First in the US
Key points
- NYC's click-to-cancel rule is now in effect.
- Businesses must offer easy online cancellation for subscriptions.
- The rule is expected to save New Yorkers millions annually.
- NYC is the first US city to implement such a rule.
- Mayor Zohran Mamdani announced the legislation in July.
- The rule introduces civil penalties for non-compliant businesses.
- A new portal allows New Yorkers to submit complaints about subscriptions.
New Consumer Protection Rule in Effect
New York City has implemented its "click-to-cancel" rule, which mandates that businesses provide a cancellation process for recurring subscriptions that is as straightforward as the sign-up process. This means that if a service can be subscribed to online, it must also be cancellable online, without requiring phone calls or in-person visits.
Economic Impact and Precedent
The city anticipates that this new regulation will save its residents an estimated $21.5 million to $162.5 million each year. NYC is the first municipality in the United States to successfully enact such a rule, following a federal version being struck down on procedural grounds. This action highlights how local governments can establish consumer protections when federal efforts face obstacles.
Government Speed and Accountability
Samuel Levine, Commissioner of the NYC Department of Consumer and Worker Protection (DCWP), noted the rapid implementation of the rule in NYC compared to previous federal attempts. He stated that the rule was proposed, finalized, and took effect within the same year, contrasting it with a four-year federal effort that ultimately did not provide relief. NYC Mayor Zohran Mamdani emphasized that if companies can take money with one click, consumers should be able to cancel with one click.
Consumer Complaint Portal
To support the new rule, New York City has launched a new consumer portal where residents can file complaints regarding difficulties in canceling subscriptions. This portal is designed to provide a direct channel for consumers to report non-compliant businesses.
Updates
- Mayor Zohran Mamdani announced the legislation in July.
- The rule introduces civil penalties for non-compliant businesses.
- A new portal allows New Yorkers to submit complaints about subscriptions.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
New York City has enacted a "Click-to-Cancel" rule, requiring companies to provide an equally straightforward online cancellation process as their sign-up method. This legislation aims to protect consumers from difficult subscription cancellation procedures and introduces civil penalties for non-compliant businesses.
New York City has enacted a "click-to-cancel" rule requiring businesses to make subscription cancellation as easy as signing up, allowing residents to submit complaints to the city government. This initiative is projected to save New Yorkers between $21.5 million and $162.5 million annually, setting a precedent for local governments to regulate consumer protections.