New York City Mayor Zohran Mamdani has announced a first-of-its-kind “Click to Cancel” rule aimed at helping consumers cancel subscriptions much more easily.
At a press conference this week, former Federal Trade Commission chair Lina Khan specifically mentioned Adobe executives who admitted that their early termination fees had become “‘a bit like heroin for the company,’ a form of revenue they just couldn’t quit.”
Mamdani says, “In our city, we’re drawing a clear line: if you can sign up with a click, you must be able to cancel with one.”
What the Rule Requires
The rule, which takes effect October 1, requires companies to:
– Explain subscription terms clearly to customers
– Clearly disclose consumers’ rights when buying or canceling subscriptions
– Provide the same straightforward cancellation process as the sign-up
– Not ask the customer to pay to ship items that were provided for free
The rule is being enforced by the Department of Consumer and Worker Protection.
The Junk Fee Problem
“There are a lot of second yachts being paid for by junk fees,” DCWP Commissioner Sam Levine told Jacobin. “We know that companies like Ticketmaster, Adobe… companies like Amazon had a name for its difficult cancellation process called Project Iliad, likening the process of cancellation to Homer’s epic about the Trojan War.”
The officials say the Click to Cancel rule will save New Yorkers up to $162.5 million per year.
“I encourage all New Yorkers, if you’re trapped in a subscription, if you’re paying a junk fee, call 311,” says Levine. “First, we’ll try to get you your money back. And then if we see a pattern of companies ripping people off, we’ll take them to court.”
The Broader Context
Earlier this year, Adobe agreed to pay $75 million after it settled a lawsuit brought by the US Department of Justice, alleging that the company hid fees and made it excessively challenging for customers to cancel subscriptions.
“More and more of our economy is switching online. More and more companies are relying on things as a service,” added Khan. “In a lot of instances, they’ve also created new opportunities for businesses to squeeze people, to trick them, to act in unfair ways. And so this effort is really about modernizing consumer protection to speak to the modern economy.”
The Bottom Line
New York City Mayor Zohran Mamdani has announced a “Click to Cancel” rule requiring companies to make subscription cancellations as easy as sign-ups. The rule takes effect October 1 and targets companies like Adobe, Ticketmaster, and Amazon. Officials say it will save New Yorkers up to $162.5 million per year. The rule comes after Adobe agreed to a $75 million settlement with the DOJ over hidden fees and difficult cancellations.
