‘Click to cancel’ rule protects New York City residents from subscription traps
Officials say it requires companies to clearly explain subscription terms, disclose consumers’ rights when purchasing or cancelling and provide a simple cancellation process.
A new rule taking effect Thursday will help protect New York City residents from confusing, time-consuming obstacles that make it difficult to cancel subscriptions.
The Department of Consumer and Worker Protection will enforce the “Click to Cancel” rule.
Officials say it requires companies to clearly explain subscription terms, disclose consumers’ rights when purchasing or cancelling and provide a simple cancellation process.
Businesses caught violating it would be liable for civil penalties starting at $525 and may have to refund the consumer.
The rule also allows consumers to file complaints against businesses that make it difficult to cancel subscriptions.
City officials are calling it a “first-in-the-nation” municipal rule keeping locals safe from subscription traps.
“In our city, we’re drawing a clear line: if you cant sign up with one click, you must be able to cancel with one,” said Mayor Zohran Mamdani.
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