New York Attorney General Letitia James has informed residents about the Federal Trade Commission’s (FTC) upcoming “Click-to-Cancel” Rule, which was originally set to take effect on July 14. However, due to a recent decision by the Eighth Circuit, the rule will not be implemented on this date.
The new rule aims to simplify the process for consumers wishing to cancel subscriptions or services that renew automatically. It mandates that companies must make cancellation as straightforward as enrollment and allow customers to use the same method they used for signing up—whether online, in person, or over the phone. If canceling online, consumers should find the cancellation option easily without being required to chat with an agent if they did not do so during sign-up.
“New Yorkers should never have to jump through hoops just to cancel an unwanted subscription,” stated Attorney General James. “This new ‘Click-to-Cancel’ rule will protect consumers and ensure companies are operating fairly. I encourage anyone who has a difficult time canceling a subscription to report it to my office, and I will continue to make sure companies throughout our state are following the law.”
The Click-to-Cancel Rule also obligates companies to clearly present what consumers are agreeing to before they sign up for automatically renewing subscriptions. Important details about these subscriptions must be clear and accessible.
Attorney General James encourages New Yorkers facing difficulties in canceling subscriptions to file complaints with her office online.
Throughout her tenure, Attorney General James has been active in protecting New Yorkers from challenging recurring subscription processes. In May, she secured $600,000 in penalties from Equinox and refunds for consumers over complicated membership cancellations. Previously, she won a lawsuit against SiriusXM in November 2024 regarding unwanted subscription traps and obtained $740,000 from Cerebral in December 2023 due to their burdensome cancellation procedures. In June 2023, she led a bipartisan effort among 26 state attorneys general supporting changes that led to the new Click-to-Cancel Rule.
