Thank you for the opportunity to testify about the Department of Consumer and Worker Protection’s (DCWP) proposed rules on the cancellation of subscriptions (the “Proposed Rule”). The Partnership for New York City mobilizes private sector resources and expertise to advance New York City’s standing as a global center of economic opportunity, upward mobility, and innovation. We are a nonprofit organization whose members are preeminent business leaders and companies that support nearly one million jobs in New York City and deliver approximately $263 billion in economic output. 

We appreciate DCWP’s commitment to protecting consumers and ensuring transparency in subscription services. Our members share the goal of providing fair and simple cancellation processes. The Proposed Rule is unnecessary, risks creating inconsistency with state law, and would impose substantial unintended costs and operational burdens without meaningful additional consumer benefit. 

The Proposed Rule is Largely Covered by New York State’s Comprehensive Law; Any Differences Will Only Create Confusion 

The Proposed Rule largely duplicates New York State (NYS) law and is, therefore, unnecessary. NYS recently enacted significant amendments to its automatic renewal laws (NY General Business Law §§ 527‑a and 396‑mm), creating one of the most comprehensive subscription regulatory frameworks in the country. This law already mandates a simple cancellation mechanism that is as easy as the sign‑up method and is available through the same medium used for consent. It also prohibits a business from obstructing or delaying cancellation and it includes robust disclosure, consent, and notice requirements. 

The Proposed Rule contains a minimal number of differences from NYS law. This introduces ambiguity around compliance obligations. If DCWP moves forward with this rule, businesses would be subject to overlapping and potentially inconsistent requirements, making compliance more complex, particularly for companies operating across jurisdictions. Importantly, consumers would not receive materially different or enhanced protection. 

Recommendation: Rely on NYS law. Do not enact additional rules. 

The Rule Should Preserve Flexibility in Cancellation Channels 

The proposal includes rigid “same medium” requirements that does not reflect how businesses actually operate across different channels (§§5-110-1(c) and (d)). Consumers should be able to cancel subscriptions through any simple and accessible method, but should not be strictly limited to the original enrollment channel. This approach protects consumers but avoids unnecessarily constraining service design. 

 Recommendations: 

• The rule should provide more flexibility by mirroring the NYS law requirement to provide a “simple cancellation mechanism that is as easy to use as the mechanism used to provide consent” ((NY General Business Law §§ 527‑a(1)(d)); and 

• Where consent for a subscription is made in-person, a business should be able to provide an online or telephone cancellation mechanism. 

The Treatment of Retention (“Save”) Offers Is Overly Restrictive 

The Proposed Rule’s approach to discounted offers, retention benefits, and explanatory messaging during cancellation raises significant concerns. Evidence shows that consumers value and actively seek these offers. In fact, many consumers seek to cancel specifically to see whether a better price is available. These offers deliver direct financial savings to consumers, promote competition among providers, and allow consumers to make better‑informed decisions. 

The Proposed Rule would severely discourage businesses from offering discounts or retention benefits, reducing consumer access to benefits, even though there is no data showing that providing discounted offers, information about retention benefits or about the effect of cancellation obstructs cancellation. 

Recommendation: Mirror NYS law’s provision stating: “if a consumer conveys a request to cancel, the business may present the consumer with a discounted offer, retention benefit or information regarding the effect of cancellation but may not impose unreasonable or unlawful conditions upon consumer’s ability to cancel, refuse to acknowledge, obstruct or unreasonably delay cancellation requested[.]” (NY General Business Law §§ 527‑a(1)(e)(ii)) 

The Rule Does Not Adequately Account for Industry-Specific Considerations 

Certain industries operate under complex regulatory frameworks and service structures that differ significantly from typical subscription products. Telecommunications services, for example, are similar to utilities where services are critical. Customers use these services daily, so they are not likely to forget they have a subscription. An accidental cancellation can create serious problems for a customer including loss of a phone number, acceleration of payments for devices. Therefore, these services require customer engagement and verification, not purely frictionless cancellation. In addition, these services are already subject to extensive consumer protection regimes. The Proposed Rule already includes exemptions for many similarly regulated entities. 

Recommendation: Exempt providers entities regulated by the NYS Department of Public Service or the Federal Communications Commission. 

The Proposed Penalty Structure Is Disproportionate 

The Proposed Rule introduces monetary penalties that exceed those under NYS law. This would create inconsistent enforcement regimes within the state, additional compliance risks for businesses without any additional benefit to consumers, and potential over‑deterrence of beneficial practices (e.g., offering discounts). 

Recommendation: Aligning penalties with NYS law to ensure consistency and fairness. 

The Partnership opposes the Proposed Rule. It adds operational burden and legal risk for businesses without meaningful additional protection for consumers. Accordingly, we respectfully urge DCWP not to act on the Proposed Rule. If DCWP is intent on moving forward, we recommend aligning the Proposed Rule with NYS’s existing law. 

We appreciate the opportunity to provide input and look forward to continued engagement on this issue. Thank you.