New York City's 'Click to Cancel' Rule Targets Adobe and Other Subscription Services
Mayor Zohran Mamdani of New York City has introduced a pioneering 'Click to Cancel' regulation, marking the first initiative of its kind in the United States, aimed at simplifying the cancellation of subscriptions for consumers. Starting October 1, this rule mandates that businesses must offer a cancellation method as straightforward as the sign-up process, transparently outline terms and rights, and refrain from charging for the return shipping of complimentary items. Sam Levine, the DCWP Commissioner, revealed that Amazon's cancellation initiative was referred to internally as 'Project Iliad.' The Department of Consumer and Worker Protection (DCWP) will enforce this rule, which is projected to save New Yorkers up to $162.5 million each year. Earlier in the year, Adobe agreed to a $75 million settlement with the DOJ concerning hidden fees and challenging cancellation processes.
Key facts
- Mayor Zohran Mamdani announced the 'Click to Cancel' rule in New York City.
- The rule is the first of its kind in the U.S.
- It takes effect on October 1.
- Companies must provide a cancellation process as easy as sign-up.
- Former FTC chair Lina Khan referenced Adobe's 'heroin for the company' comment.
- DCWP Commissioner Sam Levine mentioned Amazon's 'Project Iliad'.
- The rule is expected to save New Yorkers $162.5 million per year.
- Adobe settled a DOJ lawsuit for $75 million earlier this year.
Entities
Institutions
- Federal Trade Commission
- Department of Consumer and Worker Protection
- Adobe
- Ticketmaster
- Amazon
- United States Department of Justice
- Jacobin
- PetaPixel
- KEH.com
- Moment
- FJ Westcott
- Blue Moon Camera and Machine
Locations
- New York City
- United States