NYC is now the first city in America that bans sketchy subscriptions
New York City has implemented a 'click-to-cancel' rule, requiring businesses to make canceling subscriptions as easy as signing up. This local regulation follows the failure of similar federal efforts to pass.
Why it matters
This represents a significant consumer protection victory at the municipal level, potentially serving as a model for other cities to bypass federal gridlock.
New York City residents struggling to get out of recurring subscription fees can now submit complaints to the city government. As of Thursday, the city’s click-to-cancel rule has taken effect, which requires businesses to make it as easy to cancel a subscription as it is to sign up. That means a gym that lets you join online, for example, can’t make you call or go in person to end your subscription.
It’s the first municipality to see the rule take effect, after an appeals court struck down a federal version for procedural issues. The city expects it to save New Yorkers anywhere from $21.5 million to $162.5 million annually. And to NYC Department of Consumer and Worker Protection (DCWP) Commissioner Samuel Levine, it’s an example of how state and local governments can hold companies accountable when federal efforts fail.
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