New York City’s ‘click to cancel’ subscription rule takes effect, joining states with similar laws

Title: New York City's 'click to cancel' subscription rule takes effect, joining states with similar laws

URL Source: https://www.cnbc.com/2026/10/01/new-york-city-click-to-cancel-subscription-rule-in-effect.html

Published Time: 2026-10-01T16:55:34+0000

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New York City’s ‘click to cancel’ subscription rule takes effect, joining states with similar laws

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New York City’s ‘click to cancel’ subscription rule takes effect, joining states with similar laws

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New York City’s ‘click to cancel’ subscription rule takes effect, joining states with similar laws

Published Thu, Oct 1 2026 12:55 PM EDT Updated 2 Hours Ago


[Sarah Agostino](https://www.cnbc.com/sarah-agostino/)

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Key Points

• While New York state already has a rule on the books, the city now has authority to enforce similar protections locally and is providing a website for consumers to file complaints.

• More than half of states have laws on the books governing subscriptions that automatically renew.

• The Federal Trade Commission is considering a revival of its ‘click-to-cancel’ rule, which a federal court vacated ahead of it taking effect last July.

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New York City has become the latest jurisdiction to crack down on hard-to-cancel subscriptions.

The city’s new “click to cancel” rule, which took effect Thursday, requires businesses to make it easier for customers to end subscriptions that renew automatically. While [New York state](https://www.nysenate.gov/legislation/laws/GBS/527-A) already requires a cancellation method as easy as sign-up, this gives the city authority to enforce similar protections locally and is[providing a website portal](https://www.nyc.gov/main/click-to-cancel) for consumers to complain about violations.

“If a company can take your money with one click, you should be able to get your money back with one click,” said Mayor Zohran Mamdani in a news release Thursday.

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New York City is the first municipality to adopt a click-to-cancel rule, according to city officials, joining a growing number of states that have enacted or strengthened laws governing automatic subscription renewals and cancellations as the possibility of a nationwide standard remains unsettled.

“Automatic renewals have been a pain point for [consumers](https://www.cnbc.com/2026/09/29/consumer-optimism-slides-sharply-as-fears-escalate-over-rising-prices-and-jobs.html), and this is a popular topic with regulators, especially now given the increased focus on affordability, so I expect we’ll continue to see more of these laws on the state level,” said Gonzalo Mon, a partner with the law firm of Kelley Drye & Warren in Washington.

[](https://www.cnbc.com/2026/10/01/new-york-city-click-to-cancel-subscription-rule-in-effect.html)Complaints about ‘negative option’ subscriptions grow

So-called “negative option” subscription contracts — those that automatically renew unless consumers cancel them — have generated a growing number of complaints as their prevalence and use have increased, according to experts. While these subscriptions are easy to sign up for, they can be difficult to cancel.

Each year, U.S. adults spend an average of $1,080 on subscriptions, according to a[survey by CNET](https://www.cnet.com/personal-finance/subscription-survey-2025/), a media website focused on consumer technology. By generation, millennials spend the most annually, at an average $1,215. The survey was conducted online in April 2025 by YouGov and involved 2,440 adults.

The survey found that consumers spend an average of $205 annually on subscriptions they no longer use.

In 2024, the FTC received an average of nearly 70 consumer complaints per day about hard-to-cancel subscriptions, up from 42 daily in 2021, [according to the agency](https://www.ftc.gov/news-events/news/press-releases/2024/10/federal-trade-commission-announces-final-click-cancel-rule-making-it-easier-consumers-end-recurring).


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Artificial intelligence may also be giving consumers a new way to deal with unwanted subscriptions. For example, [Meta](https://www.cnbc.com/quotes/META/)’s new AI agent,[Muse](https://www.cnbc.com/2026/09/27/meta-muse-ai-personal-agent.html), says it can cancel subscriptions on a user’s behalf.

Meanwhile, more than half of states have rules that govern automatic renewals, Mon said.

“Although there are some variations, the laws generally address similar themes,” he said.

The laws typically require upfront disclosure of key terms, consumer consent and confirmation, and an easy way to cancel, Mon said. Some also require renewal reminders.

[](https://www.cnbc.com/2026/10/01/new-york-city-click-to-cancel-subscription-rule-in-effect.html)What’s going on at the federal level

The FTC finalized a national click-to-cancel rule in October 2024 under the Biden administration. It was quickly challenged in court by a range of business and trade groups, including the U.S. Chamber of Commerce and the National Federation of Independent Businesses.

About a week ahead of the rule taking effect in mid-July 2025, the Eighth Circuit Court of Appeals vacated it on procedural grounds.

However, the FTC may make another attempt at a federal rule. In [a March 13 notice](https://www.federalregister.gov/documents/2026/03/13/2026-04952/rule-concerning-the-use-of-prenotification-negative-option-plans) this year, the agency sought public input on whether to update its decades-old Negative Options Rule, including whether to adopt provisions of the vacated click-to-cancel rule. Comments were due April 13.

Given the notice, “it’s likely that the FTC will move forward, but we don’t know how or when,” Mon said.

> It’s likely that the FTC will move forward, but we don’t know how or when.

>

>

>

> Gonzalo Mon

>

>

>

> Partner with Kelley Drye & Warren

In the meantime, the FTC has continued to pursue companies over their subscription practices using existing federal consumer-protection laws.

For example, the agency announced [a $35 million settlement](https://www.ftc.gov/news-events/news/press-releases/2026/05/shutterstock-pay-35-million-settle-ftc-allegations-over-illegal-subscription-cancellation-practices) in May with Shutterstock over allegations of unfair and deceptive practices that included making subscriptions difficult to cancel.

Additionally, several bills that seek to authorize click-to-cancel rules are pending in Congress, including the bipartisan and bicameral [Unsubscribe Act](https://www.congress.gov/bill/119th-congress/house-bill/7048). Among other provisions, the measure would require companies that offer subscriptions to provide easy cancellations and to get consumers’ approval before charging them after a free or reduced-cost period.

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**Residents (or authorized agents) of states _not listed_ in the “Your Rights” section of our Privacy Policy:** If we do not detect that you are in one of the states listed in the “Your Rights” section of our Privacy Policy, we cannot ensure that we will be able to apply your opt out choice, even if you utilize the toggle.

Please note, your choice through the toggle is specific to this site, for this browser and device. If you access other Versant sites and services, you will need to opt out for each. Also, if you clear your cookies on this browser or use another browser or device, you will need to opt out again. You can change your choice any time.

If you opt-out, you may continue to see advertising, including ads that may be based on personal data processed before you opted out.

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You should also provide the info requested in this [Opt-Out Form](https://privacyportal.onetrust.com/webform/941b48f1-4637-4ecd-b01d-629494daf8b2/6d056e9f-08d3-433f-a209-afb06bb411c6), which will enable us to take action on your opt-out election more broadly than just this site (e.g., we will be able to stop sharing your email with third parties in order to target you with adverting on other sites and services, such as social media platforms).

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