Mayor Zohran Mamdani Introduces Click-to-Cancel to NYC

Cancelling online subscriptions will become significantly easier for New York City residents beginning October 1, following the introduction of a new Click-to-Cancel rule announced by Mayor Zohran Mamdani. The regulation will be enforced by the city's Department of Consumer and Worker Protection (DCWP) and will require service providers to offer consumers a simple and straightforward way to cancel their subscriptions.

Under the new rule, companies will no longer be allowed to let customers sign up for subscriptions with just a few online clicks while forcing them to endure lengthy customer service calls or complicated procedures to cancel. In addition to fulfilling a campaign promise, the measure effectively revives a consumer protection proposal championed by former Federal Trade Commission (FTC) Chair Lina Khan, which was struck down last year.

According to the mayor's announcement, the new legal protection applies specifically to automatic renewal and recurring service subscriptions. Companies will be required to clearly disclose all subscription terms to customers. The regulation also prohibits businesses from charging consumers to return products that were originally provided free of charge as part of a subscription offer.

Businesses that violate the rule will be required to compensate affected customers and face civil penalties starting at $525 per violation. Although the regulation applies specifically to New York City residents, the Department of Consumer and Worker Protection noted that it is consistent with existing New York State laws governing notices related to automatic subscription renewals and cancellations.

Alongside the Click-to-Cancel rule, New York City is also introducing a proposed junk fees regulation, which will be released for public comment on August 7. The proposal aims to eliminate hidden and mandatory fees added after an advertised price and require businesses to display the full, upfront cost of products and services. Mayor Mamdani campaigned on a pledge to curb corporate exploitation. Coincidentally, former FTC Chair Lina Khan—who also championed regulations targeting junk fees and click-to-cancel practices—served as co-chair of the mayor's transition team.

The Federal Trade Commission had planned to implement a nationwide Click-to-Cancel rule in July 2025. However, after the commission was restructured under President Donald Trump and the Eighth Circuit Court of Appeals struck down the regulation, the nationwide initiative was abandoned. Despite the federal setback, several U.S. states—including California, Utah, Idaho, Massachusetts, Georgia, Minnesota, Colorado, Illinois and Arkansas—have already implemented their own Click-to-Cancel consumer protection laws.

//DBTech/BMT/OR//