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New York City Proposes First Local 'Click to Cancel' Rule for Subscriptions

City hall moves to fill the gap left by the canceled federal rule.

Overview

  • The DCWP proposal, published April 8 in the City Record, opened a 30-day public comment period that includes a May 8 hearing.
  • The draft rule would force companies to let people cancel as easily as they signed up, with clear terms shown before billing and no hurdles that slow or hide cancellation.
  • It would cover automatic renewals and other ongoing service offers used by gyms, apps, health clubs, and similar businesses across the city.
  • DCWP would gain citywide enforcement power with restitution for charges after a customer’s first cancellation attempt and fines starting at $525 that can rise to $3,500 for repeat offenses.
  • The move follows the Eighth Circuit’s July 2025 decision that erased the FTC’s Click-to-Cancel rule, and it parallels strict state models like California’s Automatic Renewal Law that many multistate businesses already use as a compliance baseline.