New York City is preparing to overhaul how residents cancel their subscriptions, following a new rule introduced by Mayor Zohran Mamdani. Called the "Click-to-Cancel" rule, it will require companies to make ending a subscription just as simple as signing up for one.
As per the Department of Consumer and Worker Protection (DCWP), which will oversee enforcement, the rule officially takes effect on October 1, 2026, making New York City the first city in the country to roll out such a citywide measure.
What Changes For Subscribers
Under the new framework outlined by DCWP, businesses offering auto-renewing or continuous-service subscriptions must set up an easy, accessible cancellation process. This puts an end to long customer service calls, being kept on hold, mailing physical cancellation letters, or visiting a store or gym in person just to quit a service. Persistent retention pop-ups designed to discourage cancellation will also be barred.
Platforms like Netflix, Amazon's subscription services, Disney+ and gym chains are among the businesses expected to come under this rule, given their reliance on recurring billing models, reports said.
What Mamdani Said
Announcing the policy, Mamdani said the goal was to give consumers a fair and transparent experience, stating that "if you can sign up with one click, you can cancel with one click." He linked the initiative to his broader affordability agenda focused on protecting New Yorkers from hidden costs.
According to DCWP, companies that fail to comply could face civil penalties of $525 per violation, restitution to affected customers, and further enforcement action. Businesses will also need to clearly disclose subscription terms and cannot charge customers for returning promotional items originally given for free.
According to estimates from the Roosevelt Institute, the rule could help New Yorkers save as much as $162.5 million annually. A similar nationwide "click-to-cancel" proposal, earlier pushed by former Federal Trade Commission Chair Lina Khan, was struck down by the Eighth Circuit Court of Appeals in 2025 before it could take effect.
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