Cutting the Rope on Subscription Dilemmas: The New State Budget Simplifies Unsubscribing from Cable or Streaming Providers
In a significant move to protect consumers, New York has enacted a new law that requires companies to offer easy cancellation methods for subscriptions. This law, which is part of a broader trend in states such as California, aims to simplify the process of cancelling subscriptions and prevent the creation of subscription traps.
The law, included in the 2025 New York state budget, mandates that companies provide cancellation methods that are as simple as the way consumers signed up. This mirrors the federal "click to cancel" rule, which is set to take effect later this month, although its future is uncertain due to ongoing legal challenges.
Under the new law, companies must clearly disclose automatic renewal terms before collecting billing information and obtain affirmative consent from consumers before a subscription can auto-renew. They must also provide simple and accessible cancellation methods, available through the same medium used for enrolment.
The law applies to a wide range of subscriptions, from cable TV to streaming services like Spotify. Companies are also prohibited from obstructing or unreasonably delaying customers' attempts to cancel their subscriptions. If companies offer a temporary low price or free trial of a subscription, they must clearly explain when the price will increase and by how much.
Initially, corporate giants like Amazon, Apple, Comcast, and Verizon would have been exempted under the proposed law. However, the final version removes this loophole, ensuring that even the largest companies are held accountable.
Consumer advocates welcomed this development, as the initial proposal's omission of companies regulated by the Federal Communications Commission could have left New Yorkers no better off when it comes to some of the most subscription-hungry companies.
Norman Silber, a consumer law expert at Hofstra University's law school, stated that the law will make it easier for consumers to get out from under automatic renewals. Samuel Levine, who was in charge of the Federal Trade Commission's consumer protection efforts under former President Joe Biden, expressed hope that the New York attorney general will take action against unlawful subscription traps.
The state Senate's March budget proposal eliminated a loophole that would have exempted some of the country's largest companies. If the federal government declines to act, the New York attorney general can go after companies that try to create subscription traps, ensuring that consumers are protected regardless of the federal government's actions.
[1] For more information on the specific details of the law and the federal Restore Online Shoppers’ Confidence Act (ROSCA), please refer to the sources provided.
- The new law enacted in New York's 2025 state budget, which is part of a broader trend, mandates that companies provide cancellation methods as simple as the way consumers signed up, echoing the federal "click to cancel" rule.
- The law, designed to prevent the creation of subscription traps, requires companies to clearly disclose automatic renewal terms, obtain affirmative consent, and offer simple cancellation methods.
- The law applies to a wide range of subscriptions, including cable TV, streaming services, and extends to corporate giants like Amazon, Apple, Comcast, and Verizon, without any exemptions.
- Consumer advocates believe the law will make it easier for consumers to escape automatic renewals, and hope the New York attorney general will take action against unlawful subscription traps, regardless of the federal government's actions.
