NYC is now the first city in America that bans sketchy subscriptions

New York City has begun enforcing a click-to-cancel rule that obliges companies to offer cancellation methods no more burdensome than their sign-up process. Under the policy, a business that allows customers to subscribe online must also permit online cancellations; firms may not force consumers to call or visit in person to end recurring services. The rule took effect on Thursday and is the first municipal implementation after an appeals court overturned a federal version on procedural grounds.

The city opened a complaints portal where residents can report unclear subscription terms, delayed cancellations, or failures to disclose automatic renewals. Complaints filed through the portal will be reviewed by the Department of Consumer and Worker Protection (DCWP), which may follow up, attempt to secure refunds and cancellations for affected consumers, and identify patterns that could trigger investigations or legal action. The city says businesses can face fines starting at $525 per violation.

DCWP Commissioner Samuel Levine, who previously led consumer protection efforts at the Federal Trade Commission under Lina Khan, argued that the NYC rule demonstrates how state and local governments can act when federal efforts falter. Levine told The Verge the city’s implementation has been far quicker than the multi-year federal process and framed the local rule as a model other municipalities could adopt. He also said the city’s complaint portal was built by the mayor’s Public Interest Technology Crew in 10 weeks and will route filings to staff rather than chatbots.

New York City estimates the rule could save residents between $21.5 million and $162.5 million a year. Mayor Zohran Mamdani was quoted emphasizing that consumers should be able to cancel as easily as they subscribe and warning that the city will pursue companies that deny consumers an easy cancellation path. The story notes that the federal FTC under current Chair Andrew Ferguson has taken an initial step toward possibly restoring a similar national rule, but the city’s action provides immediate local protections and enforcement tools.