New York Attorney General Letitia James has issued a reminder to residents about the Federal Trade Commission’s (FTC) upcoming “Click-to-Cancel” rule. Initially set to be implemented on July 14, the rule is now delayed due to a decision by the Eighth Circuit. The regulation aims to simplify the process of canceling subscriptions and services that renew automatically.
The rule mandates that companies must offer cancellation options that are as straightforward as their enrollment processes. This includes allowing consumers to cancel using the same method they used for signing up, whether online, in person, or over the phone. Online cancellations should be easy to locate, and consumers should not be required to chat with an agent if they did not do so during enrollment.
Attorney General James emphasized the importance of this new regulation, stating, “New Yorkers should never have to jump through hoops just to cancel an unwanted subscription.” She encouraged individuals facing difficulties with cancellations to report such issues to her office.
Beyond simplifying cancellations, the Click-to-Cancel Rule also requires companies to ensure that consumers understand what they are agreeing to before subscribing. Information about subscriptions must be clear and easily accessible. James urges New Yorkers encountering problems with subscription cancellations to file complaints online with her office.
Attorney General James has a history of protecting New Yorkers from challenging cancellation processes for recurring subscriptions. In May, she secured $600,000 in penalties from Equinox and refunds for consumers over cancellation difficulties. She also won a lawsuit against SiriusXM in November 2024 for trapping customers in unwanted subscriptions and obtained $740,000 from Cerebral in December 2023 for its cumbersome cancellation procedures. Additionally, in June 2023, she led a group of 26 state attorneys general in supporting changes that led to the new Click-to-Cancel Rule.
