Canceling a gym membership or an online service will soon be much simpler for people in New York City. On Thursday, a new city rule called "click-to-cancel" took effect. Under this rule, businesses must allow customers to end a subscription using the same easy method they used to sign up. For example, if a gym allows you to join online, it can no longer force you to make a phone call or visit in person to cancel your membership.
City leaders created the rule to stop companies from using frustrating tactics to keep charging consumers. NYC Mayor Zohran Mamdani stated that if a company can take a customer's money with one click, the customer should be able to cancel with one click as well. The city estimates that this change will save New York residents between $21.5 million and $162.5 million every year. New York City is the first city in the United States to enforce this rule after a federal version was stopped by a court.
To help residents, the city created a new website portal where consumers can submit complaints if a business makes cancellation difficult, hides subscription terms, or renews automatically without warning. Unlike many automated help services, city workers will personally handle these complaints to help people get their money back. Businesses that violate the new rule could face fines starting at $525 for each violation.