NEW YORK
New York City's "click-to-cancel" rule is now in effect, requiring businesses to offer subscription cancellation methods as straightforward as their sign-up processes. The city is the first municipality in the United States to implement such a regulation, after a federal version faced procedural setbacks in appeals court.
The NYC Department of Consumer and Worker Protection estimates the rule will save New Yorkers between $21.5 million and $162.5 million annually. Commissioner Samuel Levine, who previously led the Federal Trade Commission's consumer protection division under Lina Khan, views the measure as a template for state and local governments to enforce protections when federal efforts stall.
Levine spent over four years developing the FTC's national click-to-cancel rule, which did not survive legal challenge. Under current FTC Chair Andrew Ferguson, the agency has begun steps to potentially reestablish a comparable rule, but Levine predicts municipalities will adopt similar measures first, creating a patchwork deterrent against deceptive subscription practices even if national coverage remains incomplete.
Consumers can now file complaints through a new portal if they encounter unclear subscription terms, delayed cancellation processes, or undisclosed auto-renewals. The DCWP will review complaints, potentially investigate, assist consumers in recovering funds, and help them cancel subscriptions. Businesses found in violation face initial fines of $525 per infraction, with escalation for persistent noncompliance.
The mayor's Public Interest Technology Crew developed the portal in 10 weeks. Levine emphasized that consumers will reach human agents, not automated systems. "Actual people whose full-time job is to help them" will staff the service, addressing widespread frustration with chatbot-based customer service that often leaves problems unresolved.
