New York City has introduced a Click-to-Cancel rule requiring easy online cancellation of subscriptions, effective October 1. This regulation aims to simplify the cancellation process and enforce transparency, reviving a previously abandoned FTC initiative.
Mayor Mamdani announced that starting October 1, 2023, residents of New York City will benefit from a new Click-to-Cancel rule. This regulation mandates companies to provide clear and simplified options for consumers wishing to cancel subscriptions.
The rule applies to automatic renewal and continuous service subscriptions, requiring companies to transparently disclose subscription terms. Additionally, the regulation prohibits charging consumers for returning items received as part of the subscription.
Businesses failing to comply with this rule will face restitution responsibilities for affected consumers, with penalties beginning at $525 for each violation. The enforcement will be managed by the Department of Consumer and Worker Protection in New York City.
The Click-to-Cancel rule echoes a similar initiative proposed by the Federal Trade Commission (FTC) under former Chair Lina Khan, which was abandoned last year. This new local rule emphasizes consumer protection and aims to combat corporate exploitation regarding subscription services.
Simultaneously, a proposed junk fees rule will be opened for public comment, reinforcing the aim to eliminate hidden fees by requiring upfront price disclosure. Mamdani's campaign has highlighted the importance of addressing such corporate practices.
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New York City has introduced a Click-to-Cancel rule requiring easy online cancellation of subscriptions, effective October 1. This regulation aims to simplify the cancellation process and enforce transparency, reviving a previously abandoned FTC initiative.