New York City Mayor Zohran Mamdani announced last night a landmark “Click-to-Cancel” consumer protection rule that makes New York the first municipality in the nation to require businesses to provide simple, straightforward subscription cancellation. The rule, finalized July 10, 2026, is projected to save New Yorkers between $21.5 million and $162.5 million annually, according to the Roosevelt Institute.
The rule takes effect October 1, 2026, and applies to automatic renewal and continuous service subscriptions. It requires businesses to clearly disclose subscription terms and provide an easy cancellation process. “If you can sign up with one click, you can cancel with one click,” Mamdani said in announcing the rule. Consumers have long faced confusing and time-consuming cancellation processes, from “free trials” that quietly become recurring charges to endless online hurdles designed to discourage cancellation.
The problem is widespread. According to Consumer Reports, hidden fees cost the average family of four an estimated $3,200 each year. Too often, consumers are forced through deliberate obstacles to end unwanted subscriptions, a practice Mamdani’s administration is now directly targeting.
The federal government has pursued similar protections. The Federal Trade Commission proposed a “click to cancel” rule in March 2023, which was finalized in October 2024. However, the U.S. Court of Appeals for the Eighth Circuit vacated the federal rule in July 2025, blocking its enforcement just days before it was set to take effect. New York City’s municipal rule sidesteps that legal challenge and provides protection for its residents immediately upon implementation.
Businesses that violate the NYC rule will face restitution to harmed consumers and civil penalties beginning at $525 per violation. The rule also complements a separate proposed “Junk Fees” rule that requires businesses to advertise the full price of goods and services upfront, including all mandatory charges and fees. Deputy Mayor for Economic Justice Julie Su emphasized the human impact: “Every dollar a family loses to a hidden fee or a subscription they couldn’t cancel is a dollar stolen from them, a dollar that could have gone toward rent, groceries, childcare, or anything else.”
Lina Khan, former FTC Chair, praised the move. “These predatory tactics cheat people out of billions of dollars each year,” Khan said. “With today’s rules, Commissioner Levine and DCWP are cracking down on corporate ripoffs, protecting families and honest businesses alike.”
Sources
- NYC.gov — Mayor Mamdani’s official announcement of the Click-to-Cancel rule, July 10, 2026, including savings projections and rule details.
- ABC7 New York — Coverage of the announcement and the rule’s requirements for businesses.
- Reuters — Reporting on the rule’s October 1 effective date and its application to automatic renewal subscriptions.
- SILive.com — Confirmation of the savings range and effective date.
- Consumer Reports — Data on hidden fees costing families $3,200 annually.
- Federal Trade Commission — Information on the federal click-to-cancel rule finalized October 16, 2024.
- Consumer Finance Monitor — Reporting on the Eighth Circuit’s July 2025 vacatur of the federal FTC rule.
