NYC Launches Nation’s First Municipal Click-to-Cancel Rule
By PYMNTS
AI summary of the source article
New York City's Click-to-Cancel rule has taken effect, making it the first municipality in the nation to enact such a measure. Following Mayor Zohran Mamdani's Executive Order 10, the regulation empowers the city to penalize businesses that complicate subscription cancellations. Offenses include hidden terms, delayed cancellations, failure to disclose auto-renewals, and sending unordered merchandise. Violators face restitution requirements and civil penalties starting at $525 per incident. Although New York state already maintains a click-to-cancel law, the new city measure enables local enforcement and includes an online portal for resident complaints.
Why it matters
The measure provides New York City with local authority to enforce subscription cancellation standards and impose civil penalties on non-compliant businesses.
Key facts
- New York City became the first U.S. municipality to implement a click-to-cancel rule.
- Penalties for violating businesses include restitution and civil fines starting at $525 per violation.
- Violations include delayed cancellations, hidden automatic renewal terms, and sending unrequested products.