A new consumer protection rule in New York City requiring companies to make subscription cancellation as easy as sign-up went into effect October 1, marking what is billed as the first such measure adopted by a US city. The rule applies to subscription-based music streaming services, including Spotify, Apple Music and Amazon Music.
The regulation targets so-called dark patterns, the friction-heavy cancellation processes that have drawn criticism and regulatory scrutiny across industries. For streaming platforms, it means New York-based subscribers must be able to cancel through a straightforward process rather than navigating multiple steps or customer service calls.
The move follows similar efforts at the federal level, where the Federal Trade Commission has pushed its own click-to-cancel rule for subscription services, though that measure has faced legal challenges. New York City’s local action adds another layer of pressure on streaming companies to simplify subscription management as regulators increasingly focus on consumer-facing billing practices.
Read the full story at Music Business Worldwide.