NYC Mayor Zohran Mamdani Enacts "Click-to-Cancel" Rule for Subscriptions
Starting October 1, New York City Mayor Zohran Mamdani's administration is rolling out a "click-to-cancel" rule. This new regulation requires businesses to allow customers to cancel subscriptions using the same method they signed up with, covering areas like gyms and streaming services. NYC is the first city in the U.S. to implement this. If businesses don’t comply, they could face fines starting at $525 for the first offense, escalating to $3,500 for repeated violations, and may have to refund customers for charges made after a cancellation attempt. The Roosevelt Institute predicts New Yorkers could save between $21.5 million and $162.5 million annually. Complaints can be lodged via the NYC Department of Consumer and Worker Protection's website.
Key facts
- Effective October 1, New York City's "click-to-cancel" rule requires businesses to offer cancellation via the same method used for sign-up.
- New York City is the first U.S. municipality to enforce such a rule.
- Penalties for noncompliance: $525 for a first violation, $1,050 for a second, and $3,500 for a third or subsequent violation.
- Businesses may also need to reimburse customers for charges made after they first tried to cancel.
- The Roosevelt Institute estimates the rule could save New Yorkers between $21.5 million and $162.5 million each year.
- The Federal Trade Commission approved a nationwide click-to-cancel rule in 2024, but enforcement was delayed in May 2025 and the rule was vacated by a federal appeals court two months later.
- In March 2026, the FTC reopened the issue and asked for public input, but has not announced a replacement rule.
- Amazon agreed to a $2.5 billion settlement with the FTC in 2025 over Prime enrollment and cancellation practices, including a $1 billion civil penalty and $1.5 billion for consumer refunds.
Entities
Artists
- Zohran Mamdani
Institutions
- New York City Mayor's Office
- Federal Trade Commission
- Roosevelt Institute
- Amazon
- NYC Department of Consumer and Worker Protection
- Depositphotos
- My Modern Met
Locations
- New York City
- United States
Sources
- My Modern Met —
- Quartz —