New York City has prohibited companies from employing subscription traps and junk fees, allowing everyone to easily cancel automatic subscription renewals and service offers with just a few clicks.
The ‘Click to Cancel’ rule was first proposed in April by the Department of Consumer and Worker Protection (DCWP), representing one of the biggest consumer protection efforts in the country, according to Mayor Mamdani’s Administration.
According to the city’s website, the ‘Click to Cancel’ rule states that companies must clearly explain subscription terms, disclose consumers’ rights when buying or cancelling subscriptions, and provide a straightforward cancellation process that is as easy as the process for signing up; additionally, they cannot require consumers to pay shipping costs for items that were provided to pay shipping costs for items they gave you for free.
Along with the ‘Click to Cancel’ rule, NYC is implementing a ‘Junk Fees’ rule requiring businesses to show the total price of any good or service up front, including any mandatory fees and hidden charges. Any business that violates these rules will receive a $525 fine for each violation.
The Roosevelt Institute estimates that this rule could save New Yorkers up to $162.5 million per year.
The city has also launched a new online complaint portal for New Yorkers to report businesses that make it difficult to cancel a subscription. They can also file complaints by mail or fax and check the status of a complaint using the complaint number they receive.
DCWP Commissioner Samuel A.A. Levine encouraged people to file a complaint on the site if they feel like a business has stolen from them, robbed them, or wronged them in any way.
Mayor Zohran Mamdani says, “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.” “No one should need 45 minutes of hold music to stop paying for something they never wanted.” “New Yorkers work too hard for their money to have it drained by a subscription they can’t cancel.”
