If you sell subscriptions to New Yorkers, two sets of rules can apply: the state’s automatic renewal law, amended from 5 November 2025, and New York City’s click-to-cancel rule, in effect since 1 October 2026. Both cover terms, notices and cancellation. Here is what each requires and what records help you review them.
Reviewed 31 October 2026 · General information, not legal advice.
Each answer summarizes the cited text. It does not decide whether a particular offer is covered or meets the rules.
New York’s automatic renewal law is General Business Law Article 29-BB, §§ 527 and 527-a. For covered consumer subscriptions, it requires clear material terms before consent or billing information is requested, affirmative consent before the first charge, a confirmation the customer can keep, reminder notices in set windows and a cancellation method as easy as sign-up. Amendments took effect on 5 November 2025.
NYC’s click-to-cancel rule (6 RCNY §§ 5-110 to 5-110.3) took effect on 1 October 2026. It requires clear subscription terms, cancellation at any time through the same medium used to sign up and every medium used to accept, online cancellation for in-person sign-ups, set reminder notices and no obstruction of cancellation. Penalties start at $525 per violation.
Both consumer rules protect people buying for personal, family or household use. A separate state law, General Obligations Law § 5-903, can make an automatic renewal clause in a service, maintenance or repair contract unenforceable without written notice. It is not limited to consumers, so it can matter in business-to-business contracts.
Sources: GBL § 527-a and § 527 definitions on the NY Senate site (§ 527-a revision dated 7 November 2025); Frankfurt Kurnit summary of the 2025–26 budget amendments (13 June 2025) for the 5 November 2025 effective date; DCWP Notice of Adoption (PDF); GOL § 5-903. All checked 31 October 2026.
Exemptions include businesses operating under a franchise from a New York political subdivision, entities regulated by the NY Department of Financial Services, banks and credit unions, licensed alarm operators and service-contract sellers.
| Rule | Who it covers | Key duties | In effect | Source |
|---|---|---|---|---|
| NY automatic renewal law General Business Law §§ 527, 527-a | Businesses making automatic-renewal or continuous-service offers to consumers in New York State. Specified regulated entities are exempt. | Clear terms before consent; affirmative consent before charging; a confirmation the customer can keep; renewal, trial and change notices; cancellation as easy as sign-up, in the same medium. | Amended version in effect from 5 November 2025 | NY Senate: § 527-a |
| NYC click-to-cancel rule 6 RCNY §§ 5-110 to 5-110.3 | Any person offering or providing an automatic renewal or continuous service to a consumer, enforced by the NYC Department of Consumer and Worker Protection (DCWP). The same categories of regulated entities are exempt. | The state duties, plus cancellation through every medium used to accept, online cancellation for in-person sign-ups, set penalty amounts and restitution after the first cancellation attempt. | 1 October 2026 | DCWP Notice of Adoption (PDF) |
| Service contract renewals (business-to-business too) General Obligations Law § 5-903 | Contracts to service, maintain or repair real or personal property that renew automatically for a stated period longer than one month. Not limited to consumers. | Written notice calling attention to the renewal clause, served in person or by certified mail 15–30 days before the customer’s deadline to give notice of cancellation. | Long-standing law | NY Senate: § 5-903 |
Both rules expect the customer to see the renewal terms before agreeing. The state law adds a consent and confirmation step.
Present the product or service, what will be charged, how often, the deadline to stop further charges and how to cancel. Put these terms near the request for consent, or close in time for an offer made by voice. The City rule also requires a clear explanation of how and when a free trial or temporary price will change, and the later price.
Under the state law, get the customer’s affirmative consent before charging for the initial term, including a promotional or discounted price for a limited period.
Under the state law, send a confirmation the customer can keep with the terms, the amount and frequency of charges, the deadline to stop charges and the cancellation methods.
The state law and the City rule use the same notice windows. Send each notice by the method the customer selected, such as text, email or app notification, where the business offers it.
For an initial paid term of one year or longer that renews for a paid term of six months or longer, give notice 15–45 days before the cancellation deadline. Include instructions on how to cancel.
For a free gift or trial lasting more than a month, followed by a renewal charge, give notice 3–21 days before the cancellation deadline for the first paid period. Include instructions on how to cancel.
Give clear notice of any material change to the terms, including a price increase. Under the state law, a higher price also needs the customer’s affirmative consent, or a way to cancel within at least 14 days of the increased charge with a pro rata refund for the remaining term.
This is the part the City rule names “click to cancel.” Retention offers are allowed, but they cannot block or delay the cancellation.
Offer a simple way to cancel that is as easy to use as the sign-up method, through the same medium. Under the City rule, cancellation must also be available through every medium the business lets customers use to accept the subscription or a price increase.
Where a customer signed up in person, offer a similar in-person method where practical. The City rule also requires an online method, such as a website or email. The state law requires an online or telephone method.
Do not hang up on customers calling to cancel, hide or misstate how to cancel, misrepresent costs or consequences, refuse to acknowledge the request or delay it unreasonably. A discount, retention benefit or explanation of what cancellation means must not get in the way.
Goods sent under an automatic renewal or continuous service without affirmative consent are treated as an unconditional gift. The City rule adds that the customer does not have to pay to ship them back.
Sources: GBL § 527-a(1)–(2); 6 RCNY § 5-110.1 in the DCWP Notice of Adoption (PDF). Notice windows apply only when their triggers are met.
Exposure depends on the conduct and the claim. A missing record alone does not establish a violation.
The City’s penalty schedule lists $525 for a first violation, $1,050 for a second and $3,500 for a third or later violation. A business found in violation is liable for amounts charged after the customer’s first cancellation attempt. New Yorkers can complain through DCWP’s portal, and DCWP may mediate.
The Attorney General can seek an injunction. A court can order restitution and civil penalties of up to $100 per violation, or $500 for multiple violations from one act, with higher amounts for knowing violations. The law provides a defence for unintentional bona fide errors despite reasonable procedures.
Goods sent under an automatic renewal or continuous service without affirmative consent are treated as an unconditional gift. Under the City rule, the customer also need not pay to return them.
Sources: 6 RCNY §§ 5-110.2 and 6-47 in the Notice of Adoption (PDF); NYC Mayor’s Office release, 1 October 2026; GBL § 527-a(2)–(3). Penalty application depends on the facts and the enforcing body.
When a customer says “I never agreed,” “you never told me” or “I already cancelled,” these records help your team review what happened.
The offer version shown, where the terms appeared, how the customer agreed, the date and the channel. A payment shows a charge, not which terms were accepted.
Each confirmation, reminder and change notice: its content, the channel the customer selected, the planned date and the reported send or delivery result.
The first cancellation attempt, its channel, any retention offer shown, the outcome and the date billing stopped. NYC restitution is measured from the first attempt.
TermWitness stores the terms, events, notice records and cancellation history your team enters or imports. It does not send subscriber notices, run cancellation or decide whether an offer meets New York rules. Use qualified counsel for legal decisions.
Or create a workspace for your recordsAlso see the California automatic renewal guide and the click-to-cancel overview.
Possibly. The City rule applies to any person offering or providing an automatic renewal or continuous service to a consumer, and DCWP enforces it under the City’s Consumer Protection Law. Being based elsewhere does not settle the question. Ask qualified counsel how it applies to your New York City subscribers.
Not necessarily. DCWP says the City rule follows the state approach but changes three things: set penalty amounts, restitution of charges after the first cancellation attempt, and the cancellation methods required, including an online method for in-person sign-ups.
The penalty schedule in 6 RCNY § 6-47 lists $525 for a first violation, $1,050 for a second and $3,500 for a third or later violation. A business found in violation is also liable for amounts charged after the customer’s first attempt to cancel. Under the state law, a court can order restitution and civil penalties in an Attorney General action.
Yes, within limits. Both the state law and the City rule allow a discount, retention benefit or information about the effect of cancelling, as long as it does not impose unreasonable conditions, obstruct the request or delay cancellation unreasonably.
Neither GBL § 527-a nor the City rule sets a record-retention period. Records still help your team answer a complaint or a DCWP mediation request: what terms were shown, what the customer agreed to, which notices were sent and when a cancellation was first requested.
The state amendments were enacted in New York’s 2025–26 budget. The effective date of 5 November 2025 comes from law-firm summaries; the NY Senate’s online text of § 527-a shows a revision dated 7 November 2025. The City rule’s text, effective date and penalty schedule come from DCWP’s Notice of Adoption, and its July 2026 adoption is reported in a Skadden summary (8 September 2026).
Read GBL § 527-a on the NY Senate site ↗ or the DCWP Notice of Adoption ↗. Have New York counsel confirm current rules and interpretations before relying on them.
List each subscriber’s terms, consent, notices and cancellation requests in one place, then decide what to review.