New York City to require one-click subscription cancellations starting October 1

New York City will require businesses to let customers cancel subscriptions as easily as they signed up for them, under a new rule announced by Mayor Zohran Mamdani on July 10. The regulation takes effect October 1, 2026.

The "Click to Cancel" rule was finalized by the city's Department of Consumer and Worker Protection (DCWP), led by Commissioner Samuel A.A. Levine. It requires businesses to disclose subscription terms clearly and to offer a cancellation method that matches how the customer signed up. If a customer subscribed online, the company must allow online cancellation. If a business enrolls customers in person, it must also offer cancellation online.

"If you can sign up with one click, you can cancel with one click," Mamdani said at the announcement.

What the rule covers

The rule applies to automatic renewal and continuous service subscriptions, including streaming services, gyms and similar memberships. It bans several specific practices: hanging up on customers trying to cancel, giving false cancellation instructions, misrepresenting the cost of ending a subscription, and unreasonably delaying cancellation requests. Businesses can still offer discounts to retain customers, but those offers cannot obstruct the cancellation process.

Free trials longer than one month must come with a reminder notice sent three to 21 days before the first charge. Customers with subscriptions of a year or longer that renew for six months or more must get a renewal reminder 15 to 45 days in advance. Businesses must also give five to 30 days' notice before price increases or other material changes to subscription terms.

Companies found in violation must refund customers for charges made after a first cancellation attempt. Civil penalties start at $525 for a first violation, rise to $1,050 for a second, and reach $3,500 for a third or later violation, according to the city's notice of adoption. The rule applies to any business selling subscriptions to New York City residents, regardless of where the company is based.

DCWP said it received more than 100 consumer complaints in 2025 about difficulty cancelling subscriptions.

Projected savings and companion rule

City officials, citing an estimate from the Roosevelt Institute, project the rule will save New Yorkers between $21.5 million and $162.5 million a year. The Click to Cancel rule was announced alongside a separate proposed rule that would require businesses to advertise the full, all-in price of goods and services upfront, banning hidden mandatory fees. That proposal is set to open for public comment on August 7.

Deputy Mayor for Economic Justice Julie Su and State Senator Kristen Gonzalez also spoke in support of the rule at the announcement. Former Federal Trade Commission chair Lina Khan, who pursued a similar rule at the federal level before it was vacated by a federal court, also attended and praised the city's move. Khan served as a co-chair of Mamdani's transition team.

Industry opposition

The rule drew opposition during the public comment period. NetChoice, a trade association representing internet businesses, testified against the proposal, arguing it would create compliance costs and legal uncertainty by diverging from New York State's existing subscription law. The group said the rule's penalty structure and NYC-specific requirements could lead some businesses to limit services in the city rather than build separate cancellation systems for New York customers.

Telecommunications industry commenters sought an exemption, arguing federal rules already covered their sector. DCWP rejected that argument, saying commenters did not identify any federal requirement equivalent to click-to-cancel. Other industry commenters argued the city rule was unnecessary given New York State's General Business Law, which already regulates automatic renewals. DCWP said its rule is intended to align with state law while strengthening enforcement and penalties.

Consumer advocacy groups, including the National Association of Consumer Advocates and the Consumer Federation of America, supported the proposal during the comment period.

The rule does not create a private right of action; it will be enforced solely by DCWP. New York City is the first municipality in the United States to adopt such a requirement.