NYC 'Click to Cancel' Rule Takes Effect

The regulation applies to music streaming services, video platforms, telecom companies, gyms, and publishers selling subscriptions in the city, with music and video streaming services not among the exempt categories. Businesses offering automatic renewals are required to provide a cancellation method that is as easy as subscribing and accessible through the same channel.

The rule was proposed and published on April 8, 2026, followed by a public hearing on May 8 and final adoption on July 10. In 2025 alone, DCWP received more than 100 consumer complaints regarding the difficulty of canceling subscriptions. Administrative fines for non-compliance start at $525 for a first violation, rising to $1,050 for a second violation and $3,500 for third and subsequent violations.

Companies must provide notice of material changes in subscription terms, including price increases, at least 5 business days and at most 30 days before they take effect. Spotify had previously increased the monthly price of its US Premium Individual plan from $11.99 to $12.99. Subscriptions with an initial paid period of one year or longer renewing for six months or more require renewal notices 15 to 45 days in advance. For free trials lasting longer than one month, notice must be sent 3 to 21 days before the first paid period's cancellation deadline.