New York's 'Click to Cancel' Rule Takes Effect
A new rule in New York City requiring businesses to simplify subscription cancellation processes officially took effect on October 1. The core demand is clear: canceling a service cannot be more difficult than signing up.
As of October 1, a new regulation in New York City mandates that businesses must make it easier for consumers to cancel subscriptions. The rule stipulates that the process for canceling a service must be no more difficult than the process for signing up for it.
The regulation aims to combat "subscription traps" where consumers can easily subscribe to a service but face convoluted procedures when attempting to cancel. New York City's Department of Consumer and Worker Protection will enforce the rule.
Violating businesses may face civil penalties starting at $525, and consumers could be eligible to recover fees improperly charged. The law requires businesses to clearly explain subscription terms and consumer rights for both signing up and canceling.
Cancellation processes must be straightforward and presented in the same manner as the initial sign-up. Furthermore, companies are prohibited from demanding the return of initially free promotional items as a condition of cancellation.
New York City has also established a complaint form for consumers to report businesses that fail to comply. The city encourages reporting any instances where cancellation is unduly difficult or intentionally delayed.