James Warns NYers: FTC’s ‘Click-to-Cancel’ Rule Delayed

NEW YORK – The promise of an easy out from endless, automatically renewing subscriptions has hit a snag. New York Attorney General Letitia James today issued a cautionary note to New Yorkers: the Federal Trade Commission’s (FTC) new “Click-to-Cancel” Rule, intended to simplify subscription cancellations, will not go into effect on July 14th as previously announced. A recent decision by the Eighth Circuit has put the rule on hold, leaving consumers still battling labyrinthine cancellation processes.

The rule, had it gone forward, would have mandated that companies make cancelling a subscription just as easy as signing up. This meant mirroring the original method – online, phone, or in-person. No more being forced into endless chatbot loops or navigating deliberately confusing websites. The FTC aimed to prevent companies from deliberately making it difficult for consumers to end recurring charges, a tactic that has become increasingly prevalent.

“New Yorkers should never have to jump through hoops just to cancel an unwanted subscription,” said Attorney General James. “This delay is a setback, but my office remains committed to fighting for consumer protection and ensuring companies operate fairly. We will continue to monitor the situation and advocate for a swift resolution.” James urged anyone experiencing difficulty cancelling a subscription to file a complaint with her office.

The Click-to-Cancel Rule wasn’t just about ease of cancellation; it also addressed transparency. Companies were to be required to clearly disclose auto-renewal terms *before* consumers sign up, and to ensure all subscription information is truthful and easily accessible. This aimed to prevent the ‘surprise billing’ that plagues many subscription services. James’ office has a clear history of tackling these issues head-on.

In May, Attorney General James secured $600,000 in penalties from Equinox and refunds for consumers after the fitness giant made it excessively difficult to cancel memberships. November 2024 saw James win a lawsuit against SiriusXM, halting their practice of trapping New York customers in unwanted subscriptions. Further back, in December 2023, she secured $740,000 from Cerebral, an online mental health provider, for its burdensome cancellation process. In June 2023, James led a bipartisan coalition of 26 state attorneys general in advocating for these very changes to the FTC’s existing rule.

Despite the current delay, James’ office remains vigilant. New Yorkers who encounter frustrating cancellation procedures are encouraged to file a complaint online through the Attorney General’s website. The fight against predatory subscription practices isn’t over; it’s simply been temporarily stalled. James vowed to continue holding companies accountable and ensuring they comply with consumer protection laws, even as the legal landscape shifts. The Grimy Times will continue to follow this developing story.