New York City's click-to-cancel rule is now in effect, after Mayor Zohran Mamdani announced the legislation back in July. As the name suggests, this forces companies to make it much easier to cancel stuff. We've all experienced subscription traps before, in which businesses make it extremely easy to sign-up but mandate a Kafka-esque maze to get out.
"As the name suggests, the rule forbids companies from letting you breezily click on a few boxes to sign up online, while requiring you to navigate a byzantine network of phone calls and carrier pigeons to unsubscribe," the city wrote in a blog post. This is the first time a municipal rule seeks to protect American consumers from this kind of thing, though some states have jumped onboard with their own regulations.
The NYC law looks to be similar to proposed national FTC protections under former chair Lina Khan. They never happened, as the plan was officially killed by President Trump's version of the FTC and a federal appeals court. NYC's rule will be enforced by the Department of Consumer and Worker Protection. Businesses in violation will be liable for civil penalties, which start at $525.
As of today, companies must clearly explain subscription terms and provide a straightforward cancellation process "in the same method as sign-up." They cannot ask people to ship stuff that they initially gave out for free. Consumers can rat on companies via a complaint form. The city's Planet Fitness, Crunch and La Fitness locations had better make some changes real quick.
Source: Engadget · Summarized by HeadlinesBriefing