Happy October, NYC! Along with the UGGs, cinnamon lattes, changing leaves and increasingly aggressive Halloween decorations, the start of a new month also brings a few changes that could actually make life—and your wallet—a little easier.
NYC’s new “Click to Cancel” rule is officially in effect, making it easier to ditch unwanted subscriptions and cracking down on subscription traps. If you can sign up with a click, businesses must let you cancel the same way. Here’s what New Yorkers need to know.
What is NYC’s “Click to Cancel” rule?
In short: signing up shouldn’t be easier than getting out. The rule covers automatic-renewal and ongoing subscriptions, requiring businesses to clearly explain the terms and provide a straightforward way to cancel using the same method you used to sign up.
So if you subscribed online, you shouldn’t have to call customer service or hunt through endless menus to cancel. And if a business makes it unnecessarily difficult, you can file a complaint with the city.
Yes, this could save you from those forgotten subscriptions
We’ve all been there: You sign up for a free trial, promise yourself you’ll cancel before the first charge, completely forget about it and suddenly discover a monthly subscription you haven’t used in months. The new rule specifically targets those kinds of subscription traps, including services that use confusing instructions or lengthy cancellation processes to discourage customers from leaving.
NYC says the rule could save New Yorkers anywhere from $21.5 million to $162.5 million per year, according to estimates from the Roosevelt Institute. So that forgotten streaming service, gym membership, app subscription or other recurring charge might be a little easier to ditch going forward.
What else are businesses required to tell you?
- Clearly explain the subscription terms before you agree to them.
- Disclose your rights when buying, enrolling in or canceling a subscription.
- Get your consent before enrolling you in a subscription.
- Provide an easy way to cancel using the same method you used to sign up.
- Tell you about changes to subscription terms and auto-renewal.
- Avoid making you pay to return free products they sent you.
What if a company still makes it impossible to cancel?
This is where the new rule becomes particularly useful for New Yorkers. If you believe a business has violated the Click to Cancel rule, you can file a complaint with NYC’s Department of Consumer and Worker Protection (DCWP).
You can report issues including:
- You weren’t clearly told the subscription terms.
- You signed up online but were forced to cancel by phone, in person or through another method.
- A business delayed your cancellation.
- You were charged for a subscription after trying to cancel.
- You weren’t informed about auto-renewal or changes to the subscription terms.
- A company sent you products you didn’t request and expected you to return them or pay for them.
The city has launched an online complaint process specifically for Click to Cancel violations.
NYC is the first city in the country with this rule
The Click to Cancel rule also makes NYC the first municipality in the country to implement this type of consumer protection rule, according to the city. It’s part of a broader push by the city to crack down on practices that can make everyday expenses harder to understand or avoid, including subscription traps and hidden fees.
So, if there’s one thing worth doing this October, it might be taking a look through your bank statement and finally canceling that subscription you forgot you were paying for.