NYC Rolls Out America's First "Click-to-Cancel" Rule, Violators Face Minimum $525 Fine

Canceling a gym membership used to mean phone calls, faxes, or what some have jokingly described as needing "carrier pigeons" just to get it done. That kind of subscription trap is now officially regulated in New York City, effective October 1, 2026. Mayor Zohran Mamdani's "Click to Cancel" rule, announced this past July, has officially taken effect — making it the first regulation of its kind issued by a U.S. city government.

In a city blog post, NYC officials described the common tactic companies used: letting consumers "sign up with just a few clicks" while canceling meant having to "navigate a maze of phone calls and carrier pigeons." The new rule requires businesses to offer a cancellation process that's just as simple and straightforward as sign-up — same channel, same level of difficulty. Companies must also clearly disclose subscription terms and all consumer rights at both the time of purchase and cancellation, and they can't demand that customers return free items they received at sign-up.

The rule will be enforced by the city's Department of Consumer and Worker Protection (DCWP). Companies that violate it face civil penalties starting at $525, and consumers may be entitled to refunds for charges already deducted. The city has also launched a new complaint form, encouraging residents to report cases where cancellation was made difficult or deliberately delayed. The NYC Office of Technology and Innovation partnered with DCWP to build this new complaint portal, aiming to make it faster and easier for New Yorkers to file subscription-related complaints.

The announcement specifically called out gym chains like Planet Fitness, Crunch, and LA Fitness, signaling that they'll need to overhaul their cancellation processes soon. The comparison isn't random — gym memberships are one of the most common subscription traps out there, and the "easy to join, hard to leave" experience is all too familiar to many consumers.

The spirit of this rule closely mirrors the nationwide click-to-cancel regulation pushed by former FTC Chair Lina Khan, which was later struck down by the Trump administration's FTC and a federal appeals court, never making it into law. Coincidentally, Khan currently serves as the unpaid chair of the board of the New York City Economic Development Corporation under the Mamdani administration — which may explain why NYC's new rule bears such a strong resemblance to the federal version she once championed.

This marks the first time a U.S. local government has tackled subscription cancellation head-on through city-level legislation, following earlier efforts by some states to regulate the issue on their own. With this move, New York City has effectively put into local practice the idea that Khan was unable to push through at the federal level.