New York City Seeks to Implement the Country’s First Municipal “Click to Cancel” Rule

Last Friday, on May 8, 2026, New York City’s Department of Consumer and Worker Protection (DCWP) held a public hearing on its proposed rule “to ensure that consumers can easily cancel subscriptions and to protect consumers from deceptive and unconscionable trade practices relating to subscription offers.” The proposed rule, announced April 8, requires that businesses with automatic renewal or continuous service offers make cancelling as easy and accessible as subscribing, impose specific disclosure and notice requirements, and provide for restitution and statutory penalties, among other things. The DWCP will now consider the public hearing and received during the 30-day public comment period concerning the proposed rule, which also concluded on May 8. 

As we , New York is ramping up its focus on pricing and subscription practices, including mandatory fees charged to consumers and automatic renewal laws. This proposal follows Mayor Zohran Mamdani’s , issued in January at the start of the administration, that directs the DWCP to take action on deceptive subscription practices, including the promulgation of rules for these purposes. In announcing this latest proposed rule, Mayor Mamdani , “In [New York] city, we’re drawing a clear line: if you can sign up with a click, you must be able to cancel with one.”

New York City Takes Action as Nationwide Regulation of Automatic Renewal Subscriptions Rises

New York City’s proposal underscores the breadth of nationwide focus on regulating automatic renewal subscriptions. At the national level, the Federal Trade Commission (FTC), under former FTC Chairwoman Lina Khan, promulgated a Negative Option Rule that . But the before it took effect, largely on procedural grounds. In recent months, the FTC concerning Negative Option marketing practices. 

Numerous states have taken up the mantle of aggressively regulating automatic renewal subscriptions—including New York state. Effective November 5, 2025, New York state implemented changes to New York General Business Law §§ 527 and 527-A to create new obligations for companies offering automatically renewing subscription services, including in the areas of initial notice requirements, affirmative consent, renewal reminders, and notices for material changes and price increases. 

New York City’s proposed rule “would be consistent with the approach codified in New York State law”, according to the DCWP.

New York City’s Proposed “Click to Cancel” Rule

The proposed rule would give the DCWP citywide enforcement authority to help ensure consumers can easily cancel subscriptions. It would apply to a subscription for any type of good or service that meets the definitions of automatic renewal or continuous service offer. Automatic renewal means “a plan or arrangement in which a paid subscription or purchasing agreement is automatically renewed at the end of a definite term for a subsequent term.” Continuous service means “a plan or arrangement in which a subscription or purchasing agreement continues until the consumer cancels the service.”

The proposed DCWP rule states it is a “deceptive and unconscionable trade practice for any person to offer or provide an automatic renewal or continuous service to a consumer except in accordance with the” proposed rule’s requirements and includes the following central provisions. Read the proposed rule .

• Disclosure of Terms. Presentation to consumers of the material terms in a “clear and conspicuous manner” before requesting that a consumer consent to the offer or provide billing information—in visual or temporal proximity to the request for consent. This includes, but is not limited to, (i) a description of the product or service subject to renewal, (ii) amount that will be charged, (iii) frequency of charges, (iv) deadline by date or frequency by which the consumer must act to prevent or stop further charges, and (v) the methods by which a consumer may cancel. If the offer also includes a free gift or trial, or the price is temporary, the offer must include a “clear and conspicuous” explanation of how and when the price will change, and the price that will subsequently be charged to a consumer. 
• “Click to Cancel” Requirement. Consumers must have the option to cancel at any time using a simple cancellation mechanism that is “as easy to use” as the mechanism the consumer used to consent and is through the “same medium” that the consumer used to provide consent. Cancellation must be permitted through all mediums for which a business allows a consumer to provide affirmative consent to an automatic renewal or continuous service offer or to any price increase. And, if consent is obtained in-person, in addition to offering cancellation through a similar in-person method where practical, a business must provide an online cancellation mechanism such as a website or email. Like the FTC’s proposed “Click to Cancel” rule that was vacated, New York City’s version is also referred to as “Click to Cancel”, but no such requirement is specified under the proposed rule.
• No Delay or Obstruction of Cancellation. A business must not impose unreasonable or unlawful conditions upon, refuse to acknowledge, obstruct or unreasonably delay cancellation requests or attempts to request cancellation by the consumer. Unreasonable or unlawful conditions include hanging up on consumers who call to cancel, providing false information on how to cancel, or making misrepresentations in connection with cancellation attempts. Also, while save attempts (i.e., discounted offers, retention benefits, or information regarding the effect of cancellation) are permitted, a business cannot impose unreasonable conditions, refuse to acknowledge, or otherwise obstruct or unreasonably delay a cancellation request.
• Sending Goods Without Obtaining Affirmative Consumer Consent. If goods, wares, merchandise, or products are sent to a consumer under an automatic renewal or continuous service agreement, without first obtaining the consumer’s affirmative consent, those items shall be deemed an unconditional gift to the consumer.
• Notification Requirements.  Specific and detailed requirements to notify a consumer of an automatic renewal or continuous service charge or price change are as follows:  
  • For offers with an initial paid term of one year or longer that renew for at least six months (e.g., annual subscriptions), the business must provide a reminder notice 15-45 days before the cancellation deadline. For free gifts or trials that are more than a month, notice must be provided 3-21 days before the cancellation deadline for the first charge. These reminder notices must be provided in the manner selected by the consumer, including via text, email, app notification or any other channel provided by the business and must provide instructions on how to cancel.
  • Clear and conspicuous notice must be provided of material changes to the terms of an automatic renewal or continuous service offer (including price increases) 5-30 days prior to the change.
• Restitution and Civil Penalties for Violations. Violations result in liability for the amount charged to a consumer after the consumer’s first attempt to cancel. There are also statutory penalties of $525 for a first violation, $1,050 for a second violation, and $3,500 for a third and subsequent violations.
• Exclusions. The proposed rule does not apply to certain enumerated businesses, affiliates and entities. Excluded businesses range from companies doing business pursuant to a franchise issued by New York state (or a political subdivision) to those regulated by the Department of Financial Services. A complete list can be found at § 5-110.3 of the proposed rule.

Why It Matters: The New York City proposed “Click to Cancel” Rule largely mirrors the substantive requirements of New York State’s amended Automatic Renewal Law (effective November 5, 2025). If enacted, it could strengthen and localize enforcement—particularly around cancellation mechanics and the consumer experience. The proposed rule gives New York City’s DCWP direct authority to police these issues and provides the DCWP with enforcement authority that is not contingent on action by the New York State Attorney General. Businesses marketing subscriptions with automatic renewal or continuous service offers to New York City consumers should remain vigilant and continue to monitor the proposed rule for developments. 

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