New York City’s new “Click-to-Cancel” rule took effect October 1, 2026, requiring businesses to make subscriptions as easy to end as they are to start and giving city regulators new authority to act when companies block or delay cancellation.
The rule covers automatic renewals and continuous service subscriptions and requires businesses to make ending a subscription as easy as signing up. Someone who enrolls online cannot be forced to call or visit a business in person to stop the service.
The New York City Department of Consumer and Worker Protection can take action when businesses obstruct or unreasonably delay a customer’s request to end a subscription. Violations can include hanging up on someone trying to leave the service, giving misleading instructions, or using retention offers to stand in the way.
Businesses that violate the rule can face civil penalties starting at $525 per violation and may also be required to provide restitution to affected customers.
The city says the rule could save New Yorkers between $21.5 million and $162.5 million a year, based on estimates from the Roosevelt Institute.
The protections begin when a subscription is sold. Businesses must clearly disclose recurring costs, billing frequency, and cancellation deadlines before collecting consent or billing information. Advance notice is also required for certain long-term renewals and material changes, including price increases.
Businesses offering free trials lasting more than a month generally must notify customers of an upcoming charge three to 21 days before the deadline to cancel.
If a business sends merchandise through an automatic-renewal or continuous-service arrangement without the customer’s affirmative consent, the rule treats it as an unconditional gift. The recipient can keep or dispose of it without paying for the product or return shipping.
Consumers who continued to be charged after trying to end a subscription can file a complaint with DCWP and submit records showing what happened. Screenshots, emails, receipts, billing statements, and records of earlier cancellation attempts can help document the disputed charges.
A complaint does not automatically produce a refund. DCWP may assign a mediator to work with the consumer and the business toward a resolution, and the agency can separately investigate suspected violations. Businesses found to have violated the rule can be required to provide restitution to harmed consumers, which can include returning money improperly collected from them.
Consumers can file through the city’s Click-to-Cancel portal or submit a complaint through 311, by phone, mail or fax. After filing, they receive a complaint number that can be used to track the case.
New York City says it is the first U.S. municipality to put a click-to-cancel rule into effect. The local protections arrive after a federal appeals court vacated the Federal Trade Commission’s broader nationwide rule in July 2025 because the agency failed to complete a required preliminary regulatory analysis. The FTC reopened its review of negative-option marketing in March.
New York already has state protections governing automatic renewals, including requirements for disclosures, consent, renewal notices and ways to end recurring service. The city rule gives DCWP its own authority to pursue violations by businesses operating in New York City.
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