New York City has implemented a “click to cancel” rule effective Thursday that requires companies to provide straightforward methods for customers to terminate automatic renewal subscriptions. The city becomes the first municipality to adopt such a regulation, though New York state previously mandated that cancellation be as simple as the initial signup process. City officials have established a consumer complaint portal to address violations of the new requirement.
The regulation addresses a widespread consumer frustration with subscription services that automatically renew unless actively cancelled. According to survey data from April 2025, U.S. adults spend an average of $1,080 annually on subscriptions, with millennials averaging $1,215 per year. The same survey found that consumers waste approximately $205 yearly on subscriptions they no longer actively use. Federal Trade Commission data shows consumer complaints about difficult-to-cancel subscriptions have risen substantially, reaching nearly 70 per day in 2024 compared to 42 per day in 2021.
More than half of all states have implemented regulations governing automatic renewals, with most laws addressing similar key issues including upfront disclosure of terms, consumer consent procedures, and accessible cancellation methods. Some state laws additionally require renewal reminders before charges occur. 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 mid-July 2025 implementation. The FTC has since solicited public input on updating its Negative Options Rule and may pursue additional federal regulatory action.
Congress is also considering legislation on the issue, with the bipartisan Unsubscribe Act among pending bills that would establish federal click-to-cancel requirements. Meanwhile, the FTC has continued enforcing existing consumer protection laws against subscription services, including a $35 million settlement with Shutterstock in May over allegations of deceptive cancellation practices. Emerging technologies, including artificial intelligence agents, are also beginning to offer consumers new tools for managing unwanted subscriptions.
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