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What is NYC's click-to-cancel rule, and what are the fines?
Quick answer
Since October 1, 2026, businesses selling auto-renewing plans to New York City consumers must show the price, billing and cancel method before sign-up, let people cancel as easily as they joined, and send reminders on a set schedule (6 RCNY 5-110). Fines are $525, then $1,050, then $3,500 per violation, plus refunds.
Last verified October 9, 2026 against the official text. Not legal advice.
Key dates
- April 8, 2026: rule proposed by the NYC Department of Consumer and Worker Protection (DCWP).
- May 8, 2026: public hearing.
- October 1, 2026: rule in force. Section 3 of the adopted rule reads: “This rule takes effect October 1, 2026.”
Who it covers
The rule applies to any person that offers or provides an automatic renewal (a paid subscription that renews at the end of a set term for another term) or a continuous service (a plan that keeps going until the customer cancels) to a consumer (§5-110 and §5-110.1(a)). DCWP's statement of basis says it covers a subscription “for any type of goods or services” that meets those definitions. That includes gym and studio memberships, salon and spa plans, tutoring, cleaning and meal plans, coworking and parking, and online subscriptions sold to New York City consumers.
Exempt (§5-110.3): businesses operating under a franchise issued by a New York political subdivision and their affiliates; entities regulated by the New York State Department of Financial Services; security alarm operators licensed by the New York State Department of State; banks, credit unions and other licensed financial institutions; and sellers and administrators of service contracts as defined in the Insurance Law.
What a business has to do
- Show the terms before consent. Before asking for consent or billing details, and right next to the consent request (or, for an offer made by voice, close in time to it), clearly show what renews, the cost, how often you charge, the deadline to act to stop the next charge, and how to cancel. Free trials, gifts and introductory prices need a clear explanation of how and when the price changes and what it will be (§5-110.1(b)).
- Make cancelling as easy as joining. Offer a simple way to cancel at any time that is as easy to use as the sign-up method and uses the same medium (§5-110.1(c)), and accept cancellation through every medium you accept sign-ups through (§5-110.1(d)).
- Offer online cancellation for in-person sign-ups. If the customer joined in person, you must also offer an online way to cancel, “such as a website or email”, in addition to an in-person method where practical (§5-110.1(d)).
- Don't obstruct. No hanging up on people who call to cancel, no false information about how to cancel or what it costs, and no retention offers that impose unreasonable conditions or delay the cancellation (§5-110.1(e)).
- Send reminders inside the windows. See the table below. Reminders go out through the channel the customer chose, such as text, email or app notification.
Reminder windows
| Situation | When to notify | Rule |
|---|---|---|
| Plan with an initial paid term of 1 year or more that renews for 6 months or more | 15 to 45 days before the cancellation deadline, with instructions on how to cancel | §5-110.1(g) |
| Any material change to the terms, including a price increase | 5 business days to 30 days before the change | §5-110.1(h) |
| Free gift or trial lasting more than a month, followed by a charge | 3 to 21 days before the cancellation deadline for the first paid period, with instructions on how to cancel | §5-110.1(i) |
Penalties and refunds
The rule adds a row to the DCWP penalty schedule (6 RCNY §6-47): $525 for a first violation, $1,050 for a second and $3,500 for a third and any later violation. Separately, §5-110.2 makes a business found in violation liable for the amount it charged after the consumer's first attempt to cancel. If goods are shipped under a subscription without the consumer's affirmative consent, they count as an unconditional gift (§5-110.1(f)).
What this rule does not cover
This is a New York City rule. New York State has its own automatic renewal law, and federal rules can also apply to some businesses. Check each one that applies to you; this guide covers the city rule only.
Need the paperwork? The NYC click-to-cancel subscription kit ($49) has a sign-up terms box, “how to cancel” wording for online, paper and front-desk sign-ups, reminder and confirmation notices, a staff checklist and a log that works out each reminder window.
Frequently asked questions
What is the NYC click-to-cancel law?
It is a rule adopted by New York City's Department of Consumer and Worker Protection, codified at 6 RCNY §§5-110 to 5-110.3. It makes it a deceptive and unconscionable trade practice to offer an automatic renewal or continuous service to a consumer without following its disclosure, cancellation and reminder requirements.
When did NYC click-to-cancel go into effect?
October 1, 2026.
Does the NYC click-to-cancel rule apply to gyms?
Yes, if the gym sells memberships that renew automatically or keep billing until cancelled to New York City consumers, and it is not in one of the exempt groups in §5-110.3. Members who joined in person must also be offered an online way to cancel, such as a website or email.
Can a business require customers to cancel in person or by certified mail?
Not as the only route. Cancellation must be available through the same medium the customer used to sign up, as easily as signing up, and through every medium the business uses for sign-ups. If the customer joined in person, the business must also offer online cancellation (§5-110.1(c) and (d)).
How many days before renewal must a NYC business send a reminder?
For plans with an initial term of one year or more that renew for six months or more, between 15 and 45 days before the cancellation deadline (§5-110.1(g)). Free trials longer than a month need a reminder 3 to 21 days before the cancellation deadline (§5-110.1(i)), and price increases need notice 5 business days to 30 days before the change (§5-110.1(h)).
What is the fine for violating the NYC click-to-cancel rule?
$525 for a first violation, $1,050 for a second and $3,500 for a third or later violation, under 6 RCNY §6-47, plus restitution of charges made after the customer first tried to cancel (§5-110.2).
Can I offer a discount to someone who is cancelling?
The rule does not ban retention offers outright, but an offer, benefit or explanation presented when someone asks to cancel must not impose unreasonable conditions, refuse to acknowledge, obstruct or unreasonably delay the cancellation (§5-110.1(e)(2)).
Is this legal advice?
No. This guide is general information based on the published rule text. It is not legal advice and does not tell you how the rule applies to your business. For that, ask a licensed New York attorney.
Official sources
- NYC DCWP Notice of Adoption: Click to Cancel, adding 6 RCNY §§5-110 to 5-110.3 and a row to §6-47 (official PDF, nyc.gov)
- NYC Department of Consumer and Worker Protection: Click to Cancel (official overview)
Law text checked against the official sources above on October 9, 2026. General information, not legal advice; laws and rules change, so check the current official text before you rely on it.
Who wrote this and how it was checked
Written and maintained by Astor Ventures. We publish template kits built from public law; we are not a law firm, and no attorney has reviewed this page.
- Last verified: , against the DCWP Notice of Adoption PDF (6 RCNY §§5-110 to 5-110.3) on nyc.gov.
- Next scheduled check: monthly while DCWP publishes guidance on the new rule, or sooner if the law changes.
- Found an error? Email [email protected] and we will correct the page and the kit.