New York City has implemented a “click to cancel” rule effective immediately, mandating that businesses provide customers with straightforward methods to terminate automatically renewing subscriptions. The regulation grants the city local enforcement authority and establishes a dedicated website portal for consumers to report violations. According to city officials, New York is the first municipality to adopt such a rule, though New York state previously required cancellation methods to be as simple as the sign-up process.
The expansion of subscription cancellation protections reflects mounting consumer frustration with automatic renewal arrangements. Annual spending on subscriptions among U.S. adults averages $1,080, with millennials spending the most at approximately $1,215 per year. Notably, consumers waste an average of $205 annually on subscriptions they no longer actively use. Complaints to the Federal Trade Commission about difficult-to-cancel subscriptions have increased substantially, rising from 42 complaints daily in 2021 to nearly 70 per day in 2024.
More than half of U.S. states have implemented regulations governing automatic renewals, generally addressing similar themes including upfront disclosure of key terms, consumer consent requirements, confirmation procedures, and accessible cancellation mechanisms. Some jurisdictions additionally mandate renewal reminder notifications. The Federal Trade Commission 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 mid-July 2025 implementation date. The FTC has since solicited public input regarding potential updates to its longstanding Negative Options Rule.
Meanwhile, the FTC has pursued enforcement actions against companies under existing consumer-protection statutes, including a $35 million settlement with Shutterstock in May involving allegations of unfair subscription cancellation practices. Congress is also considering legislation on the matter, including the bipartisan Unsubscribe Act, which would mandate easy cancellation procedures and require explicit consumer approval before charging following free or discounted trial periods.
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