Policy
New York City becomes first U.S. city to enforce click-to-cancel subscription rule
The rule, which took effect this week, requires businesses to make cancellation as simple as signup and lets residents file complaints with a dedicated agency portal.
The Verge
New York City has launched the nation's first municipal click-to-cancel rule, giving residents a fresh path to challenge predatory subscription practices after a federal version faced legal setbacks. Starting Thursday, the requirement forces companies to streamline cancellation to match the ease of signup — meaning if you signed up for a gym membership online, you should be able to cancel the same way without visiting a location or calling customer service.
How the rule works and who enforces it#
The city's Department of Consumer and Worker Protection now operates a dedicated complaint portal where New Yorkers can report subscription disputes. Consumers can flag three main infractions: deceptive signup terms, delayed cancellation processing, or failure to disclose auto-renewal before charging. Once the department investigates complaints, it aims to recover funds for consumers and help them exit the subscriptions in question. Companies found systematically violating the rule face penalties starting at $525 per violation, with potential escalation to formal legal action.
Why NYC stepped in where the federal government stalled#
Samuel Levine, the city's Consumer and Worker Protection Commissioner, previously championed a national version of this rule as the Federal Trade Commission's consumer protection chief under Lina Khan. After the appeals court dismantled that federal rule on procedural grounds, Levine brought the same playbook to New York — and saw dramatically faster results. "We proposed this rule this year. We finalized it this year. It's taking effect this year," he told The Verge. The federal effort, by contrast, took over four years and ultimately never reached consumers.
Economic impact and expectations#
City officials estimate the rule will return between $21.5 million and $162.5 million annually to New Yorkers trapped in unwanted charges. Mayor Zohran Mamdani framed the stakes simply: "If a company can take your money with one click, you should be able to get your money back with one click."
A different kind of government service#
The portal itself reflects Levine's ambition to rebuild public trust in government agencies. Unlike the newly launched federal chatbot, the NYC system routes complaints to actual staff members trained to help — not automated systems. Levine emphasized the importance of human oversight to avoid the frustration that often deters people from filing complaints in the first place. "If we want to restore people's faith in government," he said, "we need to show that government can create excellent products."
