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.
- New York City becomes first US municipality to enforce click-to-cancel subscriptions
- Residents can file complaints through new portal; businesses face fines starting at $525
- Rule expected to save New Yorkers $21.5–$162.5 million annually
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New York City has introduced a rule requiring businesses to make cancelling subscriptions as straightforward as signing up for them. For instance, if a gym allows someone to join online, they must also be able to cancel online rather than being forced to phone or visit in person. This regulation applies to all subscription-based services across the city.
The rule is expected to save New Yorkers significant money annually by making subscriptions easier to exit. The city has established a system for consumers to report problems, and the Department of Consumer and Worker Protection can impose fines on companies that fail to comply. The regulation represents the first municipal implementation of this type of consumer protection rule in America.
This rule matters nationally because a similar federal attempt was previously rejected by courts, demonstrating how cities can lead on consumer protection when federal action stalls. New York's approach shows that local governments can implement consumer safeguards independently, even when national efforts face legal obstacles.
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Originally published by The Verge as “NYC is now the first city in America that bans sketchy subscriptions”.