Canceling Subscriptions Could Get Much Easier in New York — If Lawmakers Get Their Way

Governor Kathy Hochul’s proposal to make canceling subscriptions easier would exempt many major companies. The Senate wants to eliminate that loophole.

Sam Mellins   ·   March 27, 2025
Last month, after New York Focus informed her of the exemptions, state Senate Consumer Protection Committee Chair Rachel May said she’d “look into that and make sure that this law covers what it needs to cover.” | Photo: New York State Senate

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Almost everyone can think of an instance when they struggled to cancel a streaming service or gym membership, or were billed for something they didn’t want after a company renewed their subscription automatically.

Earlier this year, Governor Kathy Hochul pledged to take on this issue, unveiling a budget proposal she said would make it “just as easy to cancel a subscription as it was to sign up.”

But New York Focus found that her proposal contains a significant loophole: It wouldn’t cover companies that provide internet, TV, radio, or phone service, or any of those companies’ subsidiaries or affiliates. That means that major companies like Verizon, Hulu, Amazon Music, and others wouldn’t be forced to make it easier for customers to cancel, or to give more notice before billing them.

Now, as New York’s April 1 budget deadline ticks closer, the state Senate wants to eliminate those loopholes.

Last month, after New York Focus informed her of the exemptions, state Senate Consumer Protection Committee Chair Rachel May said she’d “look into that and make sure that this law covers what it needs to cover.”

On Tuesday, May told New York Focus that multiple Senate Democrats had raised concerns over the exemptions in Hochul’s proposal, leading the Senate to remove the loophole from its budget proposal, which was released earlier this month.

The reason that Hochul’s proposal would exempt so many companies is because it wouldn’t apply to any corporation within the purview of the national Federal Communications Commission, which regulates most communications technologies.

Experts say this would likely make the law much less effective.

“Without deleting that provision, consumers are not much better off than they were before,” said Norman Silber, a consumer law expert at Hofstra University’s law school. “In fact, in some ways, they might be worse off.”

Hochul spokesperson Kassie White said in a statement that, “Governor Hochul has signed significant consumer protections into law that are helping to crack down on telemarketers, fight back against Pharmacy Benefit Managers, allow New Yorkers to easily cancel gym memberships and end medical debt. The Governor’s Executive Budget proposed strong consumer protections and we are in the process of working with the Legislature on a budget that meets the needs of all New Yorkers.”

The Assembly didn’t include any version of the measure in its budget proposal, and a spokesperson for Speaker Carl Heastie didn’t respond to a question about where he stands on the issue.

The schism in New York mirrors a similar conflict playing out on the federal level. But unusually, this appears to be an issue where the Trump administration is to the left of Hochul.

Under former President Joe Biden, the federal government created a regulation similar to the one now under consideration in New York. It was more aggressive than Hochul’s proposal in that it didn’t have exemptions for specific companies or industries. Business groups are suing in federal court to overturn that rule, and in a surprise to some consumer protection watchdogs, the Trump Administration recently filed a brief asking the court to uphold the measure.

“That really says a lot about how common sense and bipartisan the idea of stopping subscription traps is,” said Erin Witte, director of consumer protection at the Consumer Federation of America.

That’s not to say that the Trump Administration has made consumer protection a priority overall. The federal government is largely walking away from consumer protection efforts and attacking the very existence of some consumer protection-focused agencies, noted Pat Garofalo, a state law expert at the think tank American Economic Liberties Project.

“Most of the consumer protection apparatus at the federal level is either going away entirely, or being gutted,” Garofalo said. “If you want good consumer protection, you’re going to have to do it yourself at the state level.”

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Sam Mellins is senior reporter at New York Focus, which he has been a part of since launch day. His reporting has also appeared in The San Francisco Chronicle, The Intercept, THE CITY, and The Nation. Reach him on Signal: mellins.613
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