UPDATE:
As a result of a recent decision by the Eighth Circuit, the FTC’s Click-to-Cancel rule will no longer go into effect on July 14.
New York Attorney General Letitia James reminded New Yorkers on Tuesday, July 8, that the Federal Trade Commission’s (FTC) new “Click-to-Cancel” Rule will go into effect on July 14. This rule will make it easier for consumers to cancel subscriptions and other services that renew automatically.
James said the rule requires companies to make cancellation at least as simple as enrollment and to allow consumers to cancel using the same method they used to sign up – either online, in person, or over the phone.
The New York Attorney General said the cancellation mechanism must be easy to find when canceling a subscription online, and consumers cannot be forced to chat with an agent if they did not do so when they signed up.
“New Yorkers should never have to jump through hoops just to cancel an unwanted subscription,” James said. “This new ‘Click-to-Cancel’ rule will protect consumers and ensure companies operate 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,” she added.
In addition to requiring simple cancellation, James said the Click-to-Cancel Rule requires companies to ensure that people know what they are agreeing to before signing up for a subscription that renews automatically.
She said companies must also ensure that important information about the subscription is truthful, clear, and easy to find.
Attorney General James encourages New Yorkers who experience issues canceling a subscription to contact her office by filing a complaint online.
In May, James secured $600,000 in penalties from Equinox and refunds for consumers for making it hard for New Yorkers to cancel their memberships.
In November 2024, she won a lawsuit to stop SiriusXM from trapping New York customers in unwanted subscriptions.
In December 2023, Attorney General James secured $740,000 from Cerebral, an online mental health provider, for its burdensome cancellation process.
Earlier that year, in June, she led a bipartisan group of 26 state attorneys general in submitting a comment letter to the FTC supporting changes to its existing rule. Those changes resulted in the new Click-to-Cancel Rule.
