The initiative reinstates a previously proposed FTC safeguard that was set aside last year.
Starting October 1, residents of New York City will find it significantly easier to cancel their subscriptions. Mayor Mamdani has introduced a new “Click-to-Cancel” rule, which will be enforced by the Department of Consumer and Worker Protection. This regulation mandates that companies offer a straightforward method for cancelling subscriptions. As implied by its name, the rule disallows the practice of making it easy to sign up online while complicating the cancellation process—requiring intricate navigation through phone systems or other cumbersome methods. This initiative fulfills a campaign promise and revives a proposed protection by the Federal Trade Commission under former Chair Lina Khan.
The new regulation applies to “automatic renewal and continuous service subscriptions,” as stated by the Mayor, and mandates that businesses clearly inform customers about their subscription terms. Additionally, it prohibits companies from charging customers for returning items received as part of a subscription.
Violations of this rule could result in “restitution for consumers” along with penalties beginning at $525 for each infraction. Although the rule is specific to New York City residents, it aligns with existing New York State laws concerning subscription cancellations and the obligations businesses have towards customers with automatically renewing subscriptions.
Alongside the Click-to-Cancel rule, a proposed junk fees regulation will be opened for public feedback starting August 7. This regulation aims to combat hidden fees by compelling businesses to disclose the total price of their products upfront. Mamdani’s campaign focused on curbing corporate exploitation, a concern that was also prioritized by Khan during her tenure as FTC Chair. Interestingly, Lina Khan was one of Mamdani’s transition co-chairs.
The FTC’s efforts to implement a nationwide click-to-cancel regulation were derailed in July 2025 after changes in the commission under President Trump, coupled with decisions from the Eighth Circuit Court of Appeals that invalidated the regulation. At present, click-to-cancel protections are still in place in several states, including Utah, Idaho, California, Massachusetts, Georgia, Minnesota, Colorado, Illinois, and Arkansas.
