New York City requires businesses to make subscriptions easier to cancel

New York City has become the first municipality in America to implement a click-to-cancel rule, which took effect on Thursday. The regulation requires businesses to make it as easy to cancel subscriptions as it is to sign up: for example, a gym cannot require customers to cancel by phone or in person if they joined online. This represents a significant consumer protection victory after a federal version of the rule was struck down in court, and shows how local governments can act when federal efforts fail.

The regulation is expected to save New Yorkers between $21.5 million and $162.5 million annually. NYC has established a new complaint portal where consumers can report unclear subscription terms, delayed cancellations, or failure to disclose auto-renewal. If the Department of Consumer and Worker Protection identifies patterns of noncompliance, it can pursue legal action, with fines starting at $525 per violation. Samuel Levine, the city's consumer protection commissioner and former Federal Trade Commission chief, emphasised the speed of implementation: the rule was proposed, finalised and enacted within a single year.