NYC Brings Back Click-to-Cancel Rule for Subscriptions

New York City has revived a click-to-cancel rule that requires companies to make canceling a subscription as easy as signing up, according to cnet.com. The rule applies to gym memberships, cellphone contracts and apps that charge monthly fees. It was set by executive order in January and went into effect on Oct. 1.

Companies found in violation of the city rules could be fined up to $525 per violation. New Yorkers can file complaints on a web page that allows searching for or adding a business and selecting from a list of issues. Full-time staffers will field web-submitted complaints.

The rule was introduced by New York City Mayor Zohran Mamdani. Samuel Levine, a consumer protection official, has been involved with the city's Department of Consumer and Worker Protection on the effort. The Consumer Federation of America has also weighed in on subscription cancellation practices.

A national rule that never took hold

New York City's move comes a year after an appeals court effectively canceled a nationwide regulation requiring companies to make it easier to get out of subscriptions, according to cnet.com. The click-to-cancel rules were proposed in 2024 during the Biden administration but never fully rolled out.

Other states have pursued their own measures. California has a rule requiring businesses to get a customer's explicit consent before charging for a subscription renewal, which was beefed up last year. A Maryland law that went into effect in June requires companies to give customers a cost-effective, timely and easy-to-use way to cancel auto-renewals. Colorado's Online Cancellation Act went into effect in 2025 and was expanded earlier this year.

The Eighth District Court of Appeals struck down the national rule because the proper regulatory analysis hadn't been done. The Federal Trade Commission is listed among the entities involved in the broader subscription cancellation landscape.