‘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.
This comes after Mayor Zohran Mamdani signed Executive Order 10, a directive which instructed the DCWP to prioritize cracking down on deceptive subscription practices and consider creating enforcement policies.
Officials say the rule 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.
The Roosevelt Institute estimates that the rule could save New Yorkers up to $162.5 million each year.
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 can’t sign up with one click, you must be able to cancel with one,” said Mayor Zohran Mamdani.
“No one should need 45 minutes of hold music to stop paying for something they never wanted,” he added. “New Yorkers work too hard for their money to have it drained by a subscription they can’t cancel.”
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