Times of India·4 min read·medium

New York Mayor Mamdani says companies like Netflix will now pay if you can't cancel

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New York Mayor Mamdani says companies like Netflix will now pay if you can't cancel
✦AI Summary

New York City has implemented a 'Click-to-Cancel' rule requiring companies to make canceling subscriptions as easy as signing up. Businesses that fail to comply face civil penalties and potential refund requirements.

Why it matters

This regulation sets a new precedent for consumer protection in the digital economy, potentially influencing similar legislation in other jurisdictions.

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New York City's Click-to-Cancel rule is now in force. It gives the city power to penalise any business that makes cancelling a subscription harder than signing up for one. The Department of Consumer and Worker Protection (DCWP) began enforcing it on October 1. It covers auto-renewing plans of every kind, from Netflix, Amazon Prime and Disney+ to gym memberships. Companies that break it face civil penalties starting at $525 per violation and may have to refund customers.New York is the first city in the US to adopt such a rule. It comes just over a year after a near-identical federal version was struck down days before it was due to take effect. Industry groups representing Comcast, Disney and Warner Bros. Discovery had challenged that one in court.

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