NYC adopts Click to Cancel rule

United States — New York City will adopt a policy to ban firms from engaging in subscription traps and enable consumers to easily cancel subscriptions through a so-called 'Click to Cancel' rule, city officials said on July 10, 2026. The offices of Mayor Zohran Mamdani and Department of Consumer and Worker Protection Commissioner Samuel Levine cast the new policy as the first of its kind for a municipal government in the U.S. The policy will crack down on both 'junk' fees and subscription traps. The 'Click to Cancel' rule takes effect on October 1, 2026, and applies to automatic renewal and continuous service subscriptions, requiring businesses to clearly disclose subscription terms and provide a straightforward cancellation process. The 'junk' fees rule requires businesses to advertise the full price of goods and services upfront, including all mandatory charges. Hidden fees cost an average family of four an estimated $3,200 each year, according to city officials. Businesses in violation will face restitution for consumers and civil penalties starting at $525 per violation. Former President Joe Biden's administration had introduced a national 'Click to Cancel' rule that was struck down by a federal appeals court in 2025 before its scheduled effective date.