NYC Launches 'Click to Cancel' to Combat Junk Fees and Save Residents

WHO:

ABC7 New York - Financial District resident Paige Southworth expressed that many subscriptions are financially crippling and overwhelming to cancel.

ABC7 New York - Lower East resident Ike Sanchez mentioned Netflix as an example of a subscription that does not allow users to easily catch a break.

ABC7 New York - Mayor Zohran Mamdani announced the "Click to Cancel" rule.

ABC7 New York - New York City Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine was present at the announcement.

ABC7 New York - Lina Khan, former chair of the Federal Trade Commission, is now an advisor to Mamdani.

WHAT:

ABC7 New York - The "Click to Cancel" rule is designed to protect residents from being trapped in subscriptions, such as those at gyms and hotels, and by hidden junk fees.

ABC7 New York - A similar federal rule was previously put into place by Lina Khan during the Biden administration but was blocked by the courts during the Trump administration.

ABC7 New York - The "Click to Cancel" rule will require businesses to make it as easy to cancel subscriptions as it is to sign up.

ABC7 New York - The rule is estimated to save New Yorkers up to $162.5 million per year.

ABC7 New York - Businesses that violate the rule will face restitution for consumers and civil penalties starting at $525 per violation.

WHERE:

ABC7 New York - The announcement took place in New York City.

WHEN:

ABC7 New York - The rules will go into effect in October.

WHY:

ABC7 New York - Lina Khan stated that the Mamdani administration's efforts to tackle the affordability crisis and promote economic fairness are setting a new standard nationwide.

ABC7 New York - The rule aims to protect residents from being trapped in subscriptions and hidden junk fees.

ABC7 New York - Mayor Mamdani stated that companies have built business models around making it harder for working people to manage their money.

HOW:

ABC7 New York - The rule mandates that if a subscription can be signed up for with one click, it must also be cancellable with one click.

ABC7 New York - The rule mandates that if a subscription can be signed up for with one click, it must also be cancellable with one click.

ABC7 New York - Lina Khan is spearheading the implementation of the rule at the city level.

(UPDATED July 10, 2026 23:20 UTC)

Residents are voicing their frustrations over subscription services, with Paige Southworth from the Financial District highlighting how difficult it can be to cancel them, while Ike Sanchez from the Lower East Side pointed out Netflix as a prime example of this issue. In response, the new "Click to Cancel" rule aims to protect consumers from being trapped in subscriptions and hidden fees, requiring that if a subscription can be signed up for with one click, it must also be cancellable with one click. Lina Khan emphasized that the Mamdani administration's efforts to address the affordability crisis and promote economic fairness are setting a new standard across the nation.

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(UPDATED July 10, 2026 22:26 UTC)

In a significant move to protect consumers, Mayor Mamdani announced the "Click to Cancel" rule in New York City, which will require businesses to make canceling subscriptions as easy as signing up for them. This new regulation, set to take effect in October, is expected to save New Yorkers up to $162.5 million annually, with penalties for violations starting at $525. Lina Khan, the former chair of the Federal Trade Commission, is now advising Mamdani on the implementation of this rule, which aims to prevent residents from being trapped in subscriptions and hidden fees.