New York City Proposes Strict Click-to-Cancel Subscription Requirements

New York City is poised to strengthen local enforcement of autorenewal and subscription programs, largely mirroring and operationalizing requirements already imposed under New York’s autorenewal law.

On April 8, the New York City Department of Consumer and Worker Protection (DCWP), led by Commissioner Samuel Levine, published a proposed “Click-to-Cancel” rule that would require any business offering autorenewal programs to New York City consumers, regardless of where the business itself is located, to make canceling subscription services as easy as enrollment.

NYC Click-to-Cancel Rule Overview

Under the City Administrative Procedures Act (CAPA), businesses that wish to express concerns about the proposed rule will have 30 days to submit comments online, via email, or at the public hearing, which will be held on May 8, 2026. After the comment period, DCWP will review the feedback before finalizing the rule.

Key Subscription Compliance Requirements Explained

The proposed rule would apply broadly to subscriptions that qualify as automatic renewal or continuous service offers, including digital services, apps, memberships, and recurring delivery programs. At a high level, it would impose the following requirements:

• Clear and conspicuous pre-enrollment disclosures: Businesses must clearly and conspicuously disclose all material terms—including pricing, billing frequency, cancellation deadlines, and how to cancel—before obtaining consent or billing information. Offers for free gifts, free trials, or promotional pricing must clearly explain how and when the price will change and the price the consumer will subsequently be charged.

• “Click-to-cancel” parity: Consumers must be able to cancel at any time through a simple cancellation mechanism that is at least as easy to use as the sign-up method and available through the same medium (e.g., online sign-up must allow online cancellation). If sign-up occurs in person, businesses must also offer an online cancellation option (e.g., a website or email).

• No obstruction or delay: Businesses may not impose unreasonable or unlawful conditions upon, refuse to acknowledge, obstruct, or unreasonably delay cancellation requests or attempts to cancel by a consumer.

• Affirmative consent required: Companies must obtain the consumer’s affirmative consent to the charges. Goods or products sent without the consumer’s consent will be deemed unconditional gifts, which the consumer may use or dispose of without any obligation on the consumer, including any responsibility for return shipping.

• Advance notices: Businesses must provide the following notices, each with instructions on how to cancel, delivered via the consumer’s selected communication channel (e.g., email, text, or app notification):

  • For autorenewals with an initial paid term of 1 year or longer that renew for a subsequent paid term of 6 months or more, renewal reminders must be provided 15–45 days before the cancellation deadline

  • For free gifts or trials longer than 1 month followed by an upcoming autorenewal charge, notice must be provided 3–21 days before the cancellation deadline for the first chargeable period begins

  • For any material change to subscription terms (including price increases), notice must be provided 5–30 days before the change takes effect

The proposed rule does not create a private right of action. Instead, it would be enforced by DCWP and would permit the agency to seek restitution and impose civil penalties starting at $525 per violation and increasing up to $3,500 for repeat violations.

By expressly characterizing violations as “deceptive and unconscionable trade practices,” the proposed rule integrates the above requirements into NYC’s existing consumer protection framework, thereby strengthening DCWP’s enforcement authority.

New York’s General Business Law § 527-a already regulates autorenewal programs. The law imposes many of the same baseline requirements as the proposed rule, including clear and conspicuous pre-enrollment disclosures, affirmative consent, advance renewal and trial notices, and cancellation mechanisms that are as easy to use as the method of enrollment and available through the same channels, while also prohibiting practices that obstruct or delay cancellation. The DCWP describes the proposed rule as consistent with the New York state law.

State vs. City Autorenewal Law Differences

That said, the proposed rule is generally more prescriptive for businesses than the state law. For example, while New York state law permits businesses to offer cancellation online or by telephone where enrollment occurs in person, the proposed rule would require an online cancellation mechanism, thus reducing the flexibility in how cancellation may be offered.

The proposed rule also significantly increases potential penalties—$525 to $3,500 per violation—compared with the New York state law, which provides for civil penalties of up to $100 per violation (or $500 per act) and up to $500 for knowing violations (or $1,000 per act).

The state law is more proscriptive in other respects. For example, it requires a post-enrollment confirmation notice in a retainable format, which is not required in the proposed rule. The state law also includes more detailed provisions governing price increases, requiring either affirmative consumer consent or a post-charge cancellation and refund right, whereas the proposed rule instead focuses on advance notice of material changes.

For businesses, this means that technical compliance with the state law may not be sufficient where cancellation processes introduce unreasonable friction or could be viewed as misleading in practice. Companies offering subscription services to New York City consumers should evaluate whether their cancellation processes meet a true “click-to-cancel” standard in both form and function and consider whether a uniform, nationwide approach that satisfies the standard set forth in the proposed rule is more practical.

Practical Implications for National Businesses

Although framed as a city-level rule, the proposed rule would apply to any business offering subscriptions to New York City consumers, regardless of where the business is located. This creates a practical challenge for companies operating nationally: maintaining a separate, NYC-specific cancellation flow or notice framework may be difficult, particularly for digital platforms that rely on standardized user experiences.

As a result, municipal-level requirements may further complicate businesses’ efforts to maintain a single, consistent approach to subscription and cancellation practices to comply with federal, state, and now local laws.

We will continue monitoring the rulemaking process and provide updates as developments occur. Contact Venable’s Autorenewal Solutions Team (VAST) if you have questions about the case or your subscription practices.

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