NYC Proposes 'Click-to-Cancel' Mandate for Subscription Services
NYC has proposed a rule requiring subscription services to offer an easy cancellation option.
Why it matters: Consumer-facing companies operating in New York City face tighter compliance obligations under these new rules. Legal teams should review current subscription practices to mitigate the risk of fines and ensure alignment with evolving local regulations.
- The rule was proposed April 8, 2026, by the New York City Department of Consumer and Worker Protection.
- Businesses must make subscription cancellations as easy as signing up online.
- Violations could result in fines starting at $525 and mandatory restitution.
- The public comment period and hearing are scheduled for May 8, 2026.
The New York City Department of Consumer and Worker Protection (DCWP) on April 8, 2026, introduced a proposed 'Click-to-Cancel' rule designed to close loopholes in subscription cancellation practices.
- The rule requires businesses offering automatic renewals or continuous service subscriptions to provide a simple, user-friendly cancellation mechanism, matching the ease of initial sign-up.
- According to Mayor Zohran Kwame Mamdani, the effort aims to end so-called 'subscription traps': “If you can sign up with a click, you must be able to cancel with one.”
- DCWP Commissioner Samuel A.A. Levine echoed this sentiment, stating, "If it's easy to sign up for something, it should be just as easy to cancel."
Enforcement includes fines starting at $525 for violations, plus potential restitution for affected consumers. The rule operationalizes New York State’s Enhanced Automatic Renewal Law at a local level, ensuring stricter compliance within city limits.
The public comment period is open until May 8, 2026, the same day a public hearing will allow for further feedback from stakeholders.
For legal counsel advising businesses with New York City consumers, now is the time to review online subscription terms and cancellation workflows to prepare for possible changes in compliance expectations.
By the numbers:
- $525 — Minimum fine per violation of the proposed rule
- May 8, 2026 — Deadline for public comments and date of the public hearing
What's next: The public has until May 8, 2026, to comment on the rule, with city officials set to hold a hearing the same day.