Federal and state laws target subscription cancellations

ALBANY, N.Y. (NEXSTAR) — New Yorkers may soon find it easier to cancel unwanted online subscriptions as new federal and state rules take effect. Companies are supposed to remove obstacles standing in the way of ending services or products that they don't want.

On Tuesday, Attorney General Letitia James reminded New Yorkers to make use of the new rules. She said, "New Yorkers should never have to jump through hoops just to cancel an unwanted subscription."

The struggle of canceling a subscription can mean being trapped in an automatic renewal loop that you can't afford and don't need. That's why the new Federal Trade Commission rule called "Click-to-Cancel" is supposed to require companies to make canceling a subscription no more difficult than signing up for one.

So if a person signed up online, the company has to let them cancel online through an easy-to-find button or link—not through a forced chat with customer service. The rule also makes companies clearly explain the agreement before signing someone up for a service with automatic renewal.

According to the office of the attorney general, Click to Cancel starts on July 14. But the federal rule's enforcement under President Donald Trump remains unclear. Under President Joe Biden, the two Republican members of the FTC's board voted against the law. One, Andrew Ferguson, is now FTC chair. Even so, if enforcement proves lackluster, James herself could act against companies that create subscription traps.

New York also put protections in place through the state budget. It requires businesses to tell consumers about any renewals and price changes, give clear instructions to cancel, and make it as easy to cancel as it is to sign up. Governor Kathy Hochul said these new laws are "about fairness, transparency, and accountability and will help consumers save money and spend it wisely."

Any New Yorker facing problems canceling a subscription can report it to James' office by filing a complaint online.