The figure that matters: $525. That is the starting fine per violation under New York City’s click-to-cancel rule, which took effect on October 1, 2026. It makes New York the first municipality in the country to require businesses to offer simple, straightforward subscription cancellation.
The rule covers automatic renewals and continuous-service subscriptions, from streaming services and gym memberships to subscription boxes and free trials that turn into paid plans. Businesses must spell out the terms clearly when someone buys, enrolls or cancels. They cannot bury cancellation behind needless steps or vague instructions. Making a customer who signed up online cancel by phone or in person is exactly the kind of obstacle the city has in mind.
Penalties and enforcement
The Department of Consumer and Worker Protection enforces the rule. Violators face restitution for consumers plus civil penalties of $525 for a first offense, $1,050 for a second and $3,500 for later ones, according to TechSpot. The Roosevelt Institute estimates the rule could save New Yorkers between $21.5 million and $162.5 million a year.
“No one should need 45 minutes of hold music to stop paying for something they never wanted,” Mayor Zohran Mamdani said. Commissioner Samuel A.A. Levine put it more bluntly to companies relying on subscription tricks: “you’re on notice.”
A new way to complain
Alongside the rule, the city launched an online complaint portal at nyc.gov/click-to-cancel. The Office of Technology and Innovation’s Public Interest Technology Crew built it in 10 weeks. New Yorkers can also file by mail or fax, then track their case with a complaint number. In many cases, department mediators will work with the consumer and the business to settle it.
Residents should file if a business failed to explain the terms, made cancelling hard, delayed cancelling, sent unrequested products, skipped notice of changes, or never said the subscription would renew automatically.
The federal picture
Washington has not delivered anything comparable. The FTC approved a national click-to-cancel rule in 2024 but delayed enforcement in May 2025. Two months later a federal appeals court vacated it, because the agency had not completed a required preliminary economic analysis. The FTC reopened the rulemaking in March 2026, and comments closed on April 13. Staff review was scheduled for July, and no replacement rule has been announced.
Sources
- Mayor Mamdani Tells Subscription Traps: Click-to-Cancel — or Pay Up
- Mayor Mamdani Announces Landmark "Click-To-Cancel" Consumer Protection Rules to Ban Subscription Traps and Junk Fees
- New York City's click-to-cancel rule takes effect, making subscription cancellations as easy as sign-ups
