On July 10, 2026, the New York City Department of Consumer and Worker Protection (DCWP) announced adoption of a new “Click to Cancel” rule that, among other things, will allow residents of Gotham to cancel a subscription in a manner that is “as easy as it was to enroll.” The rule carries a $525 per violation penalty, which doubles for a second violation and more than triples to $3,500 for third and subsequent violations. The rule goes into effect October 1, 2026. At the same press conference, the DCWP also announced a proposed rule on hidden (“junk”) fees that expands on NYC's current regulation that applies only to hotels and resorts and contains requirements beyond those required in any other state or federal law. Both are covered in detail below.
TLDR: For the most part, the new Click to Cancel rule is a bit of a nothing ball, but there are some twists that warrant consideration, as discussed below. As a general (and perplexing) matter, many, if not all of the rule's requirements mirror existing requirements under New York state's current auto renewal law (GBL §527) and free trial law (GBL § 396-mm). In fact, the NY state law includes even more requirements than the DCWP rule, which raises the question “NYC, why in Sam Hill are you doing this to us?” Well, the answer (at least in our mind) lies in the fact that DCWP Commissioner Samual Levine, who was the Director of Consumer Protection at the FTC when the agency promulgated the now vacated “Click to Cancel Rule” (reported here) and former FTC Chair Lina Khan (who led NYC Mayor Zohran Mamdani's transition team) are looking to resurrect the “Click to Cancel” concept, even though this requirement already exists in many state auto renewal laws. On the other hand, the proposed junk fee law is a doozy and absolutely warrants attention and industry comments (due August 7), stat.
Click to Cancel Rule
The new click to cancel rule (C2C) follows the Mayor issuing Executive Order #10 on January 5, 2026 (the day he was inaugurated), publication of a proposed rule pursuant to EO#10 on April 8, 2026 (which we wrote about here), and a public hearing on May 8. The following is a summary of the new rule which is codified as new Part 8 under Title 6, Subchapter A of the Rules of New York (6 RCNY §§ 5-01 et seq.).
Clear and Conspicuous Disclosures: Before requesting a consumer's consent or billing information, businesses must clearly disclose all material terms of the offer in close proximity to the consent request. Required disclosures include:
- Description of the product or service;
- Renewal price and amount of future charges;
- Frequency of billing;
- Deadline for cancellation to avoid future charges;
- Available cancellation methods; an;
- If the offer includes a free trial, gift, or introductory pricing, when and how pricing will change and the future price to be charged.
Note: This section mirrors almost every state law in this area (including NYS), but also requires disclosing (i) the amount of future charges, and (ii) the available cancellation methods, both of which are required under some state laws. Re (i), it is unclear how a company can reasonably comply with this requirement if all future charges are not known at time of enrollment (think price increase). Re (ii) identifying all cancel methods can be lengthy if a seller provides several methods to cancel.
Cancellation
- "Click-to-Cancel": Consumers must be able to cancel at any time using a simple cancellation process that is as easy as the enrollment process and through the same medium used to subscribe. If consumers enrolled in person, businesses must offer an online cancellation option (such as through a website or email) where practical.
- No Obstruction of Cancellation: Businesses may not impose unreasonable barriers to cancellation, including hanging up on consumers, providing misleading cancellation instructions, delaying processing, or using retention offers or discounts in a manner that impedes a consumer's ability to cancel.
Note: This language currently appears in several state laws, especially the requirement to allow cancellation in the same medium as enrollment, so not much to see there. The “no obstruction” language appears in a handful of state laws (such as California), but those laws provide an express exception for a save attempt or explanation of the implications of cancelling, which the DCWP rules may be interpreted to arguably allow, but are written differently. For example, the New York state law mirrors the other state laws permitting these responses so long as they don't impose unreasonable or unlawful conditions to cancellation, “if a consumer conveys a request to cancel, the business may present the consumer with a discounted offer, retention benefit or information regarding the effect of cancellation but may not impose unreasonable or unlawful conditions upon consumer's ability to cancel, refuse to acknowledge, obstruct or unreasonably delay cancellation requested.” The DCWP rule, on the other hand, is not as permissive, instead prohibiting the practice, provided the save/notice does not “impose unreasonable or unlawful conditions.” Maybe the same outcome, but the DCWP rule appears to be drafted less seller friendly. Will be interesting to see how aggressively the DCWP will interpret this provision of the new rule.
Notices
- Renewal: For subscriptions with an initial paid term of one year or longer that renew for six months or more, businesses must send a renewal reminder 15 to 45 days before the cancellation deadline, using the consumer's chosen communication channel (e.g., email, text, app notification). The notice must include instructions on how to cancel the subscription.
- Notice of Material Changes: Consumers must receive notice of any material changes, including price increases, 5 to 30 days before the change takes effect.
- Free Trial Reminder: If a free trial or promotional period lasts more than one month before converting to a paid subscription, businesses must send a reminder 3 to 21 days before the first paid billing date, including instructions on how to cancel.
Note: These notice requirements generally mirror NY state law and many other state laws (in content and timing), but the DCWP rule mandates that they be sent “in a manner selected by the consumer” which suggests a seller must allow a consumer to choose how they want to receive these communications. This language appears in some other state laws, but as far as we see, is not enforced, at least publicly. Given DCWP's aggressive posture in adopting these rules, it will be interesting to see how aggressively it enforces this provision. Re the free trial notice, the New York state free trial law (GBS § 396-mm) is more prescriptive than DCWP's rules, requiring the notice be sent at least 7 days before the end of a free trial lasting less than thirty days.
Unauthorized Shipments: Goods shipped under an automatic renewal or continuous service program without the consumer's affirmative consent are deemed unconditional gifts, and the consumer has no obligation to pay for or return them.
Remedies: A business that violates the law is liable for restitution of all amounts charged after the consumer's first attempt to cancel.
Note: This remedy appears to be unique to DCWP without peer (at least expressly) under any state law.
Exemptions: The new rule exempts certain regulated entities, including:
- Public utilities operating under a government franchise;
- Financial institutions and entities regulated by the New York Department of Financial Services;
- Licensed security alarm operators;
- Banks, credit unions, and similar federally or state-regulated financial institutions; and
- Sellers and administrators of service contracts regulated under New York Insurance Law.
“Junk Fees” Rule Proposal
Pursuant to its January 5, 2026 Executive Order 9 regarding concerns with hidden (“junk”) fees, NYC proposed a new rule on July 8, 2026 that expands upon the city's existing regulations that apply only to hotels that charge “destination fees,” “resorts fees,” or “hospitality service fees” or that place holds on consumer credit cards when booking a room. The proposed rule would prohibit all businesses from misrepresenting the purpose, amount or refundability of any fees, and require that all “service charges,” “processing fees” or similar mandatory charges be included and disclosed clearly and conspicuously in an advertised price for the offered product or service and for businesses to document what those fees actually cover. The proposed rule further requires that before a consumer consents to pay for a good or service, the business must provide a full price breakdown that includes any fees excluded from the total price, such as optional add-ons, shipping, or taxes, and the final amount of the payment.
The rule would apply to any business that offers, displays or advertises goods or services in NYC or to NYC residents to the extent the rule is not preempted by federal or state laws or regulations. Comments on the proposal are due by August 7, 2026, and the DCWP will hold a public hearing the same day at 11:00 AM, accessible by phone and video conference.
Note: In recent years, several states have enacted junk fee laws that require all mandatory fees to be disclosed in an advertised price, though none go so far as requiring businesses to document the basis of all the fees it charges. That, kids, is an extreme outlier requirement and frankly a bit troubling, especially since the proposed rule does not have a time limit on keeping such records, suggesting they must be kept in perpetuity and made available to the DCWP upon request at any time, even beyond cessation of the applicable offer.
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