New York City has passed a new rule that makes it illegal for companies to make it hard to cancel subscriptions. Starting October 1, 2026, any company that makes cancellation more difficult than signup can be fined $525 for each customer The Guardian. The rule was announced by Mayor Zohran Mamdani and the Department of Consumer and Worker Protection on July 10, 2026 NYC Mayor's Office.

Here's what the rule does: If you can sign up for a service with one click, you must be able to cancel with one click too. If you had to give a credit card number to sign up, the company can't make you call a customer service line to cancel. Companies must also clearly tell you the terms of your subscription and how to cancel before you sign up NYC.

This is part of a larger effort by the city to stop hidden fees. The city also plans to require companies to show you the full price — including all extra charges — before you buy anything. This matters for things like apartment leases, concert tickets, and subscription services, where companies often hide fees until the final step The Guardian.

The idea for this rule came from a federal agency called the Federal Trade Commission, or FTC. The FTC tried to pass a similar rule for the whole country, but a court cancelled it earlier this year. That left a gap in consumer protection, and New York stepped in to create its own version NYC DCWP.

Why does New York's rule matter? The penalty of $525 per customer is higher than what most other states require. This means that companies selling subscriptions across multiple states — like Netflix, gym memberships, or meal delivery services — will now have to follow New York's stricter rules. If they don't, the fines add up fast.

Companies have until October 1 to make changes to how you cancel subscriptions. Many streaming and subscription services added extra steps to cancellation over the past few years to keep people paying. Those barriers will need to come down.

It's unclear whether other cities will copy New York's approach, or whether companies will sue to block the rule before it starts. But the rule shows a shift in how local governments are protecting consumers from subscription traps.