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Remember all that talk of “click-to-cancel” laws back in 2025? Spearheaded by the Federal Trade Commission (FTC), the idea was to make it a requirement for businesses that it should be as easy to cancel your subscription as it was to sign up for it. In other words, if you can sign up for Netflix with a click, you should be able to cancel your Netflix subscription just as easily. It sounded like an excellent idea to consumers, especially if it could help with things beyond paid subscriptions, such as unsubscribing from an email list. But what you might not have seen is that the federal effort was actually struck down in July 2025. It never became official. Now, some have decided to take matters into their own hands.
New York City has become the latest and most aggressive example, adopting a first-in-the-nation municipal rule requiring businesses to let consumers cancel subscriptions as easily as they signed up for them. They’re the only city to make the move so far, but similar legislation exists on the state level in places such as California and Colorado. It’s clearly a growing trend, not to mention a warning sign to companies: You might soon be facing mounting pressure to simplify your cancellation policies regardless of whether a nationwide federal standard exists.
Why click-to-cancel rules are so important
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New York City’s Click-to-Cancel rule takes effect Oct. 1, 2026. It applies to automatic renewal and continuous service subscriptions sold to consumers within the city. Under the rule, businesses have to clearly explain subscription terms and provide a straightforward cancellation process that mirrors the enrollment process. City officials estimate the regulation could save residents as much as $162.5 million annually by eliminating unnecessary recurring charges tied to difficult cancellation procedures.
Why care? Well, for starters, these “click-to-cancel” rules are a true bipartisan issue. Nobody wants to get charged for an unwanted App Store subscription or the like. According to independent research from Data for Progress, there’s over 80% support nationwide for greater protection against the hidden charges and subscription traps that often come with signing up.
It begs the question: If it’s so popular an idea, why did the courts strike it down in July 2025? As it turns out, the court found the FTC failed to complete a required preliminary regulatory analysis during the rulemaking process. They concluded the agency had not followed the procedural requirements necessary to implement the regulation. As a result, a growing number of local and state laws have started taking matters into their own hands, even without a uniform federal rule to follow.