New York City has implemented a “click to cancel” ordinance that mandates businesses simplify the process for customers to terminate automatically renewing subscriptions. The rule took effect on Thursday and establishes a requirement that cancellation procedures be as straightforward as the initial sign-up process. City officials indicated this makes New York the first municipality to adopt such a measure, with the city providing a complaint portal for residents to report violations.
The move aligns with broader regulatory attention to automatic renewal practices across multiple states. More than half of U.S. states have enacted rules governing automatic renewals, though these laws vary in their specific requirements. Common provisions typically mandate upfront disclosure of subscription terms, explicit consumer consent and confirmation, straightforward cancellation mechanisms, and in some cases, renewal reminders. Legal experts anticipate additional states will continue introducing similar protections as affordability concerns drive regulatory focus on consumer spending habits.
Consumer complaints about subscription cancellations have escalated significantly. The Federal Trade Commission received an average of nearly 70 complaints daily about difficult-to-cancel subscriptions in 2024, compared to 42 daily complaints in 2021. Consumer surveys indicate Americans spend an average of $1,080 annually on subscriptions, with an estimated $205 per year spent on services no longer in use.
At the federal level, the FTC finalized a national click-to-cancel rule in October 2024, but the 8th Circuit Court of Appeals vacated it on procedural grounds approximately one week before its scheduled implementation in mid-July 2025. The agency subsequently requested public comment in March regarding potential updates to its decades-old Negative Options Rule and whether to incorporate provisions from the vacated federal rule. Congress has also considered legislation on the matter, including the bipartisan Unsubscribe Act, which would establish federal click-to-cancel requirements and mandate consumer approval before charging following free or discounted trial periods.
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