Mamdani’s “Click-to-Cancel” rule allows easier cancellation of subscriptions
“If you can sign up with one click, you can cancel with one click.”
Image by John Nacion/Getty Images for Empire State Realty Trust
- New York will let consumers cancel online subscriptions as easily as they signed up, starting October 1, 2026.
- Mayor Zohran Mamdani said the rule targets subscription traps in services like streaming platforms and gym memberships.
- The city estimates the rule could save New Yorkers up to $162.5 million each year.
- Mamdani also proposed upfront pricing rules for mandatory fees, with penalties starting at $525 per violation.
Key Takeaways by nexos.ai, reviewed by Cybernews staff.
The new rule simplifies the cancellation of streaming services and gym memberships online.
The “Click-to-Cancel” rule means that subscriptions can be canceled the same way they were signed up. For instance, if you signed up for a gym online, a few clicks will be enough to cancel the subscription without making phone calls or appearing in person.
The rule aims to prevent consumers from falling for subscription traps, and is estimated to save New Yorkers up to $162.5 million per year.
New York Mayor Zohran Mamdani announced the consumer protection rule during a press conference on Friday, making the Big Apple the first US city to implement it. It will come into force on October 1st, 2026
In addition, Mamdami proposed a rule requiring businesses to list the full price of goods and services upfront, including all mandatory charges and fees.
In practice, companies that charge “service charges,” “processing fees,” or similar mandatory charges would be required to include them in the advertised price and document what those fees actually cover.
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Failure to do so would result in civil penalties beginning at $525 per violation.
The proposed rule was published on July 8th and will be followed by a public comment period and public hearing on August 7th.
“For years, companies have built their business model around making it harder for working people to hold onto their money,” Mamdani is quoted as saying.
“Whether it’s hidden fees that suddenly appear at checkout or subscriptions that take one click to sign up for and a dozen steps to cancel, the result is the same: working people pay more while corporations profit. That ends now. If you can sign up with one click, you can cancel with one click,” he added.
Subscription traps and hidden fees are extremely common in the US. Over half (51%) of American adults who have ever had a subscription or membership account reported having incurred unwanted charges, according to a 2022 survey.