Last week, on May 8, 2026, the public comment period for New York City’s own version of the “click-to-cancel rule” closed. The proposed rule (NYC Subscription Rule) was issued following an Executive Order from January 2026 by New York City Mayor, Zohran Mamdani, which focuses on ensuring New Yorkers are not forced to remain in unwanted subscriptions.

This Executive Order focuses on ensuring New Yorkers are not stuck with subscriptions. Under the Executive Order, NYC’s Department of Consumer and Work Protection (DCWP) will prioritize monitoring, investigating and taking enforcement action against subscription-related practices that deceive or mislead consumers.

The Executive Order and NYC Subscription Rule state that DCWP will examine business practices related to:

  • Enrolling individual into subscriptions;
  • Misrepresenting or failing to disclose pricing or renewal terms; and
  • Unfairly keeping individuals subscribed making it difficult to cancel.

Regulation of subscription practices is not new. Autorenewal and continuous service laws have been a recent focus for state and federal regulators, and several states have adopted their own regimes. At the federal level, the Federal Trade Commission’s (FTC) click-to-cancel rule has re-emerged after previously being vacated by the Eight Circuit Court of Appeals. New York City is now adding a local level of oversight ensuring residents are protected from “illegal subscription tactics.” 

Notably, New York State already has its own autorenewal law and the NYC Rule is modeled on the statute, further reinforcing the importance of compliant subscription and cancellation practices for businesses operating in or targeting New York.

Who Will Be Regulated? 

The NYC Subscription Rule applies broadly to any person or organization that offers an automatic renewal or continuous service to a New York City resident.

Like the New York State autorenewal law, the NYC Subscription Rule exempts certain entities, including:

  • Any service provided by a business or its affiliate where either the business or its affiliate is doing business pursuant to a franchise issued by a political subdivision of New York State;
  • Any entity, or subsidiary or affiliate regulated by the New York Department of Financial Services (NYDFS);
  • Security system alarm operators licensed by New York State;
  • Banks, bank holding companies, and their subsidiaries and affiliates; credit unions; and other financial institutions licensed under New York or federal law; and
  • Sellers and administrators of a service contract as defined under New York’s Insurance Law (Section 7902).

How Is Automatic Renewal and Continuous Services Defined?

Under the NYC Subscription Rule:

  • “Automatic renewal” means a plan or arrangement in which a paid subscription or purchasing agreement is automatically renewed at the end of a definite term for a subsequent term.
  • “Continuous service” means a plan or arrangement in which a subscription or purchasing agreement continues until the consumer cancels the service.

Business Obligations Under the NYC Subscription Rule

As proposed, the NYC Subscription Rule imposes several obligations that largely mirror New York’s State’s autorenewal statute. These obligations may change in the final rule.

  • Present Offer Terms. Businesses must present to consumers, in a clear and conspicuous manner, the material terms of any automatic renewal or continuous service offer before consent to the offer or billing information has been requested and in visual proximity to the consent. The content of the offer terms shall include:
    • A description of the product or service subject to renewal;the amount to be charged;the frequency of the charges;the deadline by date or frequency by which the consumer must act to prevent or stop further charges; and
    • the available cancellation mechanism(s).
  • Free Trial Obligations. Additional obligations are imposed if a business offers a free gift, trial, or temporary price off to consumers. Such offer must also explain how and when the price will change and the price or prices that will subsequently be charged to the consumer.
  • Affirmative Consent. Businesses must obtain consumers’ express affirmative consent to the automatic renewal or continuous service offer terms orany price increase. If a business fails to obtain affirmative consent, the goods, products, or services subject to automatic renewal or continuous service are deemed an unconditional gift to the consumer.
  • Easy Cancellation and Symmetry. Businesses must allow individuals to cancel their automatic renewal or continuous service agreement “through the same medium” used to enroll or any medium in which the consumer provides consent to the automatic renewal, continuous service offer or any price increase. For example:
    • enroll by phone means cancel by phone;
    • enroll via mobile application means cancel via mobile application; and
    • enroll in-person means cancel in person or an online mechanism (e.g., via website or email).
  • Examples of Prohibited Cancellation Conduct. The NYC Subscription Rule focuses on ensuring businesses making automatic renewal or continuous service offers do not impose unreasonable or unlawful conditions upon, refuse to acknowledge, obstruct or unreasonably delay cancellation requests. Examples of such conduct include, but are not limited to:
    • hanging up on consumers who call to cancel, obscuring or providing false information about how to cancel, misrepresenting the consequences or costs of cancellation, or misrepresenting the reasons for delays in processing consumers’ cancellation request; and
    • upon receiving a request to cancel, presenting the consumer with a discounted offer, retention benefit or information regarding the effect of cancellation while imposing unreasonable or unlawful conditions upon the consumer’s ability to cancel, refusing to acknowledge, obstructing or unreasonably delaying the cancellation requested.
  • Notice Obligation. The NYC Subscription Rule imposes a notice obligation for automatic renewal or continues service offers that either (i) include a free gift or trial period ;or (ii) have an initial paid term of one year or longer where the renewal term is at least six months. The notice must outline the cancellation deadline for the offer and how to cancel. Notice can be made in a variety of methods including by text, email, app notification or any other notification channel offered by the business.
  • Timing Requirements. For free gifts, notice must be made at least 3 but no more than 21 days before the end of the free gift or trial period. For offers longer than a year, notice must be provided at least 15 but not more than 45 days before the renewal period.
  • Material Change or Price Increase Notice. If there is a material change to the automatic renewal/continuous service terms, or a price increase, businesses must provide clear and conspicuous notice of the change and explain how to cancel. This notice must be provided at least 5 business days, but no more than 30 days, before the date of the change.

Coordination with State Regulators and Penalties

The Executive Order directs the DCWP to coordinate, as appropriate, with the New York State Law Department and New York State Attorney General.

Any violation of the NYC Subscription Rule will result in the person offering the automatic renewal or continuous service liable for the monetary amount charged for the automatic renewal or continuous service offer after the consumer’s first attempt at cancellation.

Looking Ahead

Businesses should regularly review their consumer disclosures and their subscription sign‑up and cancellation processes to ensure they comply with applicable state and local automatic‑renewal laws. Clear, accurate, and easily accessible information about renewal offer terms, free trials, pricing, and cancellation rights mitigate legal risk and promote transparent, consumer‑friendly practices. Taft will continue to monitor developments related to the NYC Subscription Rule and similar laws. If you have questions about this Rule, or about automatic renewals/continuous service agreements more broadly,  Taft’s Privacy, Security & AI attorneys are available to assist. As always, please sign up to receive emails of our latest posts here on Privacy and Data Security Insights, and follow us on LinkedIn for the latest in privacy, security and artificial intelligence legal news.