<\/p>\n
We’ve all been there: determined to cancel a subscription, only to be tempted by three free months or a discounted offer waiting on the cancellation page. Suddenly, you’re thinking twice.<\/p>\n
I’ve taken that bait several times. In fact, two of my five streaming subscriptions are currently discounted. I’ll probably try canceling them again when those offers expire.<\/p>\n
So, while signing up for a subscription can take just seconds, canceling one can sometimes feel like a part-time job.<\/p>\n
Also read: Netflix faces unexpected challenge as streaming prices soar<\/p>\n
From streaming services and gym memberships to food delivery and online shopping subscriptions, consumers have grown accustomed to recurring charges that can be much harder to stop than to start.<\/p>\n
Some companies require customers to call a representative, navigate multiple cancellation screens, or repeatedly reject discounts before they can finally end a subscription.<\/p>\n
And with Americans juggling multiple subscriptions, even a few unwanted charges can add up quickly.<\/p>\n
Now, a new consumer protection rule is taking aim at these practices, potentially saving consumers millions of dollars and countless hours of frustration.<\/p>\n
New York City’s Click-to-Cancel rule, which took effect October 1, requires businesses to make ending a subscription as easy as signing up for one.<\/p>\n
Companies that violate the rule can face penalties starting at $525 per violation and may also be required to reimburse customers who were charged after trying to cancel.<\/p>\n
The financial impact could be substantial.<\/p>\n
An estimate from the Roosevelt Institute, cited by New York City’s Department of Consumer and Worker Protection (DCWP), suggests the rule could save adult consumers in the city up to $162.5 million and at least 600,000 hours annually.<\/p>\n
And while the new regulation applies to New York City, the problems it addresses extend far beyond the city’s borders.<\/p>\n
Subscription complaints have become a growing consumer problem<\/p>\n
The frustration behind unwanted subscriptions is not limited to a handful of companies.<\/p>\n
According to the Federal Trade Commission (FTC), complaints involving recurring subscriptions and negative-option marketing practices have increased considerably.<\/p>\n
In 2024, the agency received an average of nearly 70 consumer complaints per day, compared with 42 in 2021.<\/p>\n
More Lawsuits:<\/p>\n
Kansas City to pay $900,000 over a Harrison Butker post: April Leonard, the social media manager wrongly blamed for the May 2024 X post, was harassed and forced into a hotel, and the city later fired the employee who actually wrote it<\/p>\n
A travel company is suing Trump over national park fees<\/p>\n
Carl Icahn faces new legal fight over $13 billion deal<\/p>\n
These complaints involve practices such as automatic renewals, confusing enrollment terms, and consumers being charged for services they thought they had canceled.<\/p>\n
New York City’s consumer protection department received more than 100 complaints related to difficulties canceling subscriptions in 2025 alone.<\/p>\n
During the city’s rulemaking process, one consumer described having to cancel a credit card to avoid further subscription charges after experiencing difficulties ending a service.<\/p>\n
The problem has also resulted in major enforcement actions against nationally recognized businesses.<\/p>\n
Amazon, Equinox and other major brands have faced subscription settlements<\/p>\n
Over the past five years, federal and state regulators have pursued companies over subscription practices that allegedly made it difficult for consumers to stop recurring payments.<\/p>\n
Some of these cases have resulted in substantial financial penalties, while others have required businesses to change how they enroll and retain customers.<\/p>\n
Here are five prominent examples involving national brands.<\/p>\n
Company<\/p>\n
Enforcement action or settlement<\/p>\n
Consumer issue<\/p>\n
Amazon Prime<\/p>\n
$2.5 billion, 2025<\/p>\n
Allegations of unwanted enrollment and difficult cancellations<\/p>\n
Vonage<\/p>\n
$100 million, 2022<\/p>\n
Difficult cancellations and unexpected charges<\/p>\n
1-800-Flowers<\/p>\n
$375,000, 2026<\/p>\n
Misleading automatic-renewal disclosures<\/p>\n
Keeps, Nurx (Thirty Madison)<\/p>\n
$400,000, 2026<\/p>\n
Unclear subscription terms and difficult cancellations<\/p>\n
Equinox \/ SoulCycle<\/p>\n
$600,000, 2025<\/p>\n
Complicated gym and fitness membership cancellations<\/p>\n
Sources: Federal Trade Commission and New York Attorney General. <\/p>\n
The largest of these cases is Amazon.<\/p>\n
In September 2025, Amazon agreed to a $2.5 billion settlement with the FTC over allegations that it enrolled consumers in Prime without proper consent and made canceling memberships unnecessarily difficult.<\/p>\n
The agreement included a $1 billion civil penalty and $1.5 billion in consumer refunds.<\/p>\n
In September 2026, the FTC announced expanded refund arrangements that increased the maximum consumer payment to $200 from $51.<\/p>\n
What the new Click-to-Cancel rule changes for consumers<\/p>\n
The biggest change is that consumers should not have to go through a complicated process to stop paying for something they no longer want.<\/p>\n
Under New York City’s new rule, businesses offering covered automatic-renewal or continuous-service subscriptions must follow several requirements.<\/p>\n
Easy cancellations: Businesses must make canceling as easy as signing up, using the same channel. Even customers who enrolled in person must have an online cancellation option, such as a website or email.<\/p>\n
Clear subscription costs: Companies must disclose recurring prices, billing frequency, and cancellation deadlines or changes.<\/p>\n
Advance renewal reminders: Certain subscriptions with initial terms of at least one year and renewal terms of six months or longer require advance notice before the cancellation deadline.<\/p>\n
Price increase notifications: Companies must give customers advance notice of material subscription changes at least 5 days and no more than 30 days before the changes take effect.<\/p>\n
Free-trial protections: Free trials lasting more than a month must include advance notice before the first recurring payment, within the timeframe specified by the rule.<\/p>\n
No unreasonable cancellation barriers: Businesses cannot hang up on customers trying to cancel, provide misleading instructions, or unreasonably delay cancellation requests.<\/p>\n
Importantly, companies may still offer customers discounts or incentives to stay subscribed, but those offers cannot obstruct or unreasonably delay cancellation.<\/p>\n
The rule also addresses unsolicited merchandise sent as part of subscription arrangements.<\/p>\n
When businesses ship products without obtaining the consumer’s affirmative consent, those items are treated as unconditional gifts under the regulation.<\/p>\n
That means consumers cannot be forced to pay for the items or cover the cost of returning them.<\/p>\n
The most significant provision concerns what happens when a business fails to properly process a cancellation.<\/p>\n
Under Section 5-110.2 of New York City’s new regulation, businesses found in violation of the rule are liable for subscription charges imposed after a consumer’s first cancellation attempt.<\/p>\n
However, the rule does not automatically guarantee a refund simply because someone chooses to cancel a subscription. Nor does it automatically eliminate otherwise lawful contractual obligations.<\/p>\n
Subscription cancellation protections are expanding nationwide<\/p>\n
New York City is not alone in cracking down on difficult subscription cancellations.<\/p>\n
According to a September 2026 analysis by law firm Skadden, approximately 30 states have adopted some form of automatic-renewal or click-to-cancel legislation.<\/p>\n
In 2026 alone, new or amended subscription laws took effect in states including Colorado, Connecticut, Maine, Maryland and Virginia.<\/p>\n
These laws vary in requirements, including how much advance notice companies must provide before subscriptions renew.<\/p>\n
For example, New York requires certain renewal notices 15 to 45 days before the cancellation deadline, while Florida requires them 30 to 60 days in advance, according to Skadden.<\/p>\n
The growing number of state rules has become especially significant after a federal appeals court struck down the FTC’s nationwide Click-to-Cancel rule in July 2025 on procedural grounds.<\/p>\n
For consumers, subscription cancellation protections still depend considerably on where they live.<\/p>\n
New York City’s new regulation goes a step further than existing state law in certain respects, including requiring an online cancellation option even for subscriptions purchased in person.<\/p>\n
That could make it easier for customers to end gym memberships and other recurring services without having to return to the location where they signed up.<\/p>\n
How consumers can report difficult subscription cancellations<\/p>\n
New York City consumers who encounter subscription problems can now submit complaints through the city’s Department of Consumer and Worker Protection.<\/p>\n
The city’s official Click-to-Cancel website allows consumers to report businesses that make cancellations difficult, delay requests, fail to disclose subscription terms, or continue sending unwanted products.<\/p>\n
The department reviews complaints and may work with businesses and consumers to resolve disputes.<\/p>\n
Consumers should consider keeping records of their cancellation attempts, including confirmation emails, screenshots, customer service communications, and billing statements.<\/p>\n
These records can help establish when a cancellation was first requested and whether any additional charges were incurred.<\/p>\n
As the FTC’s nationwide Click-to-Cancel rule was struck down by a federal appeals court in July 2025, state and local protections are particularly important.<\/p>\n
Related: As locations close, Outback Steakhouse tries to fix a menu problem<\/p>\n
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