New York City requires companies to make subscription cancellations as easy as sign-ups
NYC's click-to-cancel rule has come into effect, requiring companies to make it as easy to cancel subscriptions as it is to sign up. The legislation, announced by Mayor Zohran Mamdani in July, addresses a widespread consumer complaint about "subscription traps" where businesses make signing up straightforward but cancellation deliberately complex. This is the first municipal rule of its kind in America to tackle this issue.
Starting today, companies must clearly explain subscription terms, disclose consumer rights, and provide straightforward cancellation in the same method as sign-up. Businesses that violate the rules face civil penalties starting at $525, and consumers may receive refunds for unauthorised charges. The NYC Department of Consumer and Worker Protection will enforce the rule, and residents can file complaints through an official portal.
- Cancelling subscriptions must be as easy as signing up under new NYC law.
- Businesses face $525 fines for violating the click-to-cancel rules starting today.
- First city-level protection against subscription traps in the United States.
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Many subscription services make it simple to join but deliberately complicated to cancel. This practice, often called a "subscription trap", has frustrated consumers who struggle to exit contracts. New York City is tackling this widespread complaint with new rules that took effect today.
From now on, companies operating in New York must make cancellation just as straightforward as the sign-up process. They must clearly explain what customers are agreeing to and allow people to cancel using the same method they used to subscribe. Businesses that fail to comply face penalties starting at $525, and customers may seek refunds for unauthorised charges.
This is America's first municipal rule of its type. The NYC Department of Consumer and Worker Protection will enforce it, and residents can report violations through an official complaints portal.
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Originally published by Engadget as “NYC’s click-to-cancel rule is now in effect to save consumers from subscription hell”.