City Announces Crackdown on Companies Making It Difficult for Customers to Cancel Subscriptions

New York City has announced plans to crack down on companies that make it difficult for customers to cancel their subscriptions.

The city is targeting companies that use tactics such as "bait and switch to keep customers tied into contracts. This involves convincing customers to sign up for a certain plan, only to have the terms change after they've committed. The goal of this strategy is to prevent customers from cancelling their services.

Software developer Alex Aminov has had firsthand experience with these tactics. He recently tried to cancel his landline service as part of his Optimum internet package. When he called to try and cancel, a representative convinced him that it would be cheaper to transfer the line to a mobile plan and offered him various discounts.

Aminov was told by one representative that all the discounts would apply, but when he got back in touch with another representative, only some of them were confirmed.

The city's new regulations aim to make it easier for consumers to cancel subscriptions by requiring companies to clearly state their terms and provide a straightforward cancellation process.

Companies must also explain customers' rights when buying or canceling a membership, and provide a simple way to do so. This move is part of the city's efforts to protect consumers from being locked into unwanted services.

The click to cancel rule has already seen some initial activity, with hundreds of complaints submitted in its first days. The city's Department of Consumer and Worker Protection will be enforcing the new regulations, which include fines for companies that fail to comply.

New Yorkers can now file complaints against businesses that make it difficult to cancel subscriptions, with fines ranging from $525 for a first-time offense to up to $3,500 for repeat offenders.

Many complaints lodged against businesses in New York City are related to gyms, streaming services, and newer subscription services that have gained popularity on social media platforms like Instagram.

These services often lure customers in with enticing offers, such as free trials or discounted initial periods, but then make it difficult for them to cancel their subscriptions. This can lead to unwanted charges and frustration for consumers who are unable to easily exit the service.

One example of this phenomenon is a meal prep subscription service that Levine signed up for after being tempted by an offer of three free boxes. However, he soon found himself overwhelmed by the constant delivery of new boxes and was unable to cancel his subscription online.

The problem disproportionately affects individuals who may not be as tech-savvy or are older, making it difficult for them to navigate complex cancellation processes that can involve phone calls and negotiations with customer service representatives.

The New York City Department of Consumer Affairs has been cracking down on companies that make it difficult for customers to cancel their subscriptions. This effort is in line with a state law requiring gyms and other businesses to offer online membership cancellation options.

As part of this initiative, NYSC's parent company made significant changes after facing allegations and a lawsuit from the New York State Attorney General. The company was accused of charging illegal fees and restricting membership cancellations, ultimately leading to bankruptcy following a settlement.

To comply with the state law, NYSC introduced online membership cancellation in February 2025. This move has improved transparency and simplified the process for members. Additionally, as of October 1st, recurring services like personal training and locker access can also be canceled online, eliminating the need for phone calls or in-person visits.

Veronica Yurovsky, a Brooklyn-based software engineer, has already submitted a complaint to the DCWP regarding her difficulties canceling her Spectrum Internet service. Despite attempting cancellation multiple times, she encountered issues with ending service online even after the click to cancel" option became available.

The new policy aims to provide consumers with a clear and timely response from the agency regarding their subscription cancellation requests.

Consumers can expect to hear back within weeks or even days, according to Levine, who emphasized the importance of trust in government's ability to address everyday issues that frustrate people.

This move is seen as a step towards creating a more consumer-friendly environment, where firms are held accountable for complying with policies that benefit customers.