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.

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.

So, while signing up for a subscription can take just seconds, canceling one can sometimes feel like a part-time job.

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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.

Some companies require customers to call a representative, navigate multiple cancellation screens, or repeatedly reject discounts before they can finally end a subscription.

And with Americans juggling multiple subscriptions, even a few unwanted charges can add up quickly.

Now, a new consumer protection rule is taking aim at these practices, potentially saving consumers millions of dollars and countless hours of frustration.

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.

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.

The financial impact could be substantial.

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.

And while the new regulation applies to New York City, the problems it addresses extend far beyond the city’s borders.

Subscription complaints have become a growing consumer problem

The frustration behind unwanted subscriptions is not limited to a handful of companies.

According to the Federal Trade Commission (FTC), complaints involving recurring subscriptions and negative-option marketing practices have increased considerably.

In 2024, the agency received an average of nearly 70 consumer complaints per day, compared with 42 in 2021.

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These complaints involve practices such as automatic renewals, confusing enrollment terms, and consumers being charged for services they thought they had canceled.

New York City’s consumer protection department received more than 100 complaints related to difficulties canceling subscriptions in 2025 alone.

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.

The problem has also resulted in major enforcement actions against nationally recognized businesses.

Amazon, Equinox and other major brands have faced subscription settlements

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.

Some of these cases have resulted in substantial financial penalties, while others have required businesses to change how they enroll and retain customers.

Here are five prominent examples involving national brands.

Sources: Federal Trade Commission and New York Attorney General. 

The largest of these cases is Amazon.

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.

The agreement included a $1 billion civil penalty and $1.5 billion in consumer refunds.

In September 2026, the FTC announced expanded refund arrangements that increased the maximum consumer payment to $200 from $51.

What the new Click-to-Cancel rule changes for consumers

The biggest change is that consumers should not have to go through a complicated process to stop paying for something they no longer want.

Under New York City’s new rule, businesses offering covered automatic-renewal or continuous-service subscriptions must follow several requirements.

• 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.
• Clear subscription costs: Companies must disclose recurring prices, billing frequency, and cancellation deadlines or changes.
• 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.
• 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.
• 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.
• No unreasonable cancellation barriers: Businesses cannot hang up on customers trying to cancel, provide misleading instructions, or unreasonably delay cancellation requests.

Importantly, companies may still offer customers discounts or incentives to stay subscribed, but those offers cannot obstruct or unreasonably delay cancellation.

The rule also addresses unsolicited merchandise sent as part of subscription arrangements.

When businesses ship products without obtaining the consumer’s affirmative consent, those items are treated as unconditional gifts under the regulation.

That means consumers cannot be forced to pay for the items or cover the cost of returning them.

The most significant provision concerns what happens when a business fails to properly process a cancellation.

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.

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.

Subscription cancellation protections are expanding nationwide

New York City is not alone in cracking down on difficult subscription cancellations.

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.

In 2026 alone, new or amended subscription laws took effect in states including Colorado, Connecticut, Maine, Maryland and Virginia.

These laws vary in requirements, including how much advance notice companies must provide before subscriptions renew.

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.

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.

For consumers, subscription cancellation protections still depend considerably on where they live.

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.

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.

How consumers can report difficult subscription cancellations

New York City consumers who encounter subscription problems can now submit complaints through the city’s Department of Consumer and Worker Protection.

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.

The department reviews complaints and may work with businesses and consumers to resolve disputes.

Consumers should consider keeping records of their cancellation attempts, including confirmation emails, screenshots, customer service communications, and billing statements.

These records can help establish when a cancellation was first requested and whether any additional charges were incurred.

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.

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