New York City is coming for companies that make it hard to cancel subscriptions

The Mamdani administration is cracking down on companies that won't let you unsubscribe. ANGELA WEISS / AFP via Getty Images Have you ever tried to cancel a gym or Internet subscription and ended up in a phone loop? A new rule in New York City aims to make it as easy to cancel as it is to sign up for memberships. Companies that don't let consumers easily unsubscribe could pay thousands. Alex Aminov, 37, doesn't know why he's on his current phone plan, or how much he's paying for it. Recently, the Brooklyn-based software developer said he tried to cancel the landline included in his Optimum internet package, which cost an extra $25 a month. When he called to try to cancel it — the only way to get through — a representative convinced him that it would be cheaper to transfer the line to a mobile plan, and that he'd be eligible for a slew of discounts. He said that representative told him they'd follow up to ensure that the transfer went through so the discounts could go into effect; she never called him back. When he got back in touch, a different representative said just some of those discounts would apply, and that they didn't know who he originally spoke with. A week or so later, a third representative called to ask why he wasn't using the number. He's still not quite sure what's happening with his various plans. "Telecom providers or basically almost anything that has a monthly subscription, it's a nightmare to cancel it," Aminov said. "In general, I would like to have an option to cancel anything online." An Optimum spokesperson said, "We're committed to making it as easy as possible for customers to manage their services and get the support they need. Each customer has different needs." New York City is addressing this very struggle. As of October 1st, New Yorkers can file complaints against businesses that make canceling subscriptions unnecessarily difficult. The city's Department of Consumer and Worker Protection will enforce fines ranging from $525 for the first violation to up to $3,500 for repeat offenses, and businesses may be required to reimburse affected consumers for unwanted services. The city's "click to cancel" rule requires companies to state their subscription terms clearly, explain people's rights when buying or canceling a membership, and provide a cancellation process as "straightforward" as the sign-up process. A few hundred complaints were submitted in the first days of the rule, and around 6,000 New Yorkers had visited the click-to-cancel site, according to DCWP Commissioner Sam Levine. He said many complaints are about gyms, streaming services, and newer, smaller subscription services that consumers might find on Instagram, like a shaving club or meal prep subscription. "I had one of these services, a meal prep service. I signed up for it because I think you got three free boxes. And then the boxes, they kept coming. I couldn't cook fast enough. I felt like Lucy and Ethel at the candy factory," Levine said. When he tried to cancel, he couldn't do it online. "I got on the phone, they said, 'Are you sure? We can give you a discount. We want to send you more meals.' It's a huge pain." The roadblocks to successfully canceling a subscription disproportionately affect people who are older or not as tech-savvy, said Emily Peterson-Cassin, director of competition and market fairness at the non-profit Consumer Federation of America. The rule addresses the "annoyance economy," she said. "We're tired of our time and annoyance being extracted in the same way as our money." Some companies are already changing their processes. Kari Saitowitz, chief marketing and creative officer of the New York Sports Club, said the company supports the new rule and adjusted its cancellation process the day it took effect. "The easier you make it for somebody to cancel, we believe the easier you make it for them to sign up," she said. "It's good for the business, and it's good for the consumer." NYSC's parent company was previously sued by the New York State Attorney General for allegedly charging illegal fees and prohibiting membership cancellation, ultimately leading to a settlement and bankruptcy. Saitowitz said the company's new leadership has made an effort to increase transparency and ease the process. NYSC made online membership cancellation available in February 2025, when a state law requiring the option took effect. As of October 1st, all additional recurring services and amenities at the gym, such as access to personal training and lockers, can also be canceled online. Previously, members had to either go to the club in person or contact it by phone or email to cancel these subscriptions. Veronica Yurovsky, a 39-year-old software engineer in Brooklyn, has already submitted a complaint to the DCWP. She tried canceling her Spectrum Internet service several times, and when she failed again just days after "click to cancel" took effect, she filed a complaint saying that there seemed to be no way to end service online. "It feels more effective than screaming into a pillow, I suppose," Yurovsky said. Asked about Yurovsky's experience to the contrary, which was reviewed by Business Insider, Don Kaplan, senior director of communications at the company, said, "Spectrum complies with all applicable laws and regulations, including New York City's requirements regarding subscription cancellations." The goal is for consumers to hear back from his agency within weeks, if not days, Levine said. "If people want to trust government to do the big things, they need to be able to trust the government can take on the everyday things that drive us crazy," he said. Yurovsky would love to live in a world where firms comply with the new policy. If anything, it might make her more inclined to try out a service knowing that she wouldn't have to risk becoming ensnared in a seemingly infinite billing cycle. "It takes a load off to know that people or companies are holding up their end of the bargain," she said. Read the original article on Business Insider

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