Starting Thursday, New York City is banning companies from using subscription traps and junk fees, ensuring New Yorkers can easily cancel automatic renewals and ongoing service offers.
According to an estimate from the Roosevelt Institute, the initiative will save New Yorkers more than $160 million a year — so anyone with a subscription to anything may want to pay attention.
The “Click to Cancel” rule, first proposed by the Department of Consumer and Worker Protection in April, represents one of the strongest municipal consumer protection efforts in the country, according to Mayor Zohran Mamdani’s administration.
Mamdani himself acknowledged over the summer that he’d personally benefit from the measure.
New York City is banning companies from using subscription traps and junk fees, ensuring customers can easily cancel automatic renewals and continuous service offers — and even Mayor Mamdani will benefit from the new rule. At a press conference Monday, the mayor announced the formation of city PIT (public interest technology) crews, one of which will work to enforce the click-to-cancel rule. Mamdani shared that he has a recurring charge he can’t figure out how to cancel. When asked what subscription service he’s paying for? “It’s a publication and I’ll leave it at that,” the mayor said. #nyc #mamdani #news
♬ original sound – NBC New York
What is the ‘Click to Cancel’ rule?
Because companies often impose time-consuming hurdles to canceling subscriptions, or offer free trials that eventually turn into recurring charges, the click-to-cancel rule requires transparency when customers purchase, enroll in, or cancel services. Customers can file complaints by calling 311 or via NYC’s consumer page.
According to the city’s website, the “Click-to-cancel” rule means:
Companies must clearly explain subscription terms
Companies must clearly disclose consumers’ rights when buying or cancelling subscriptions
Companies must provide a straightforward cancellation process in the same method as sign-up
Companies cannot ask that you pay to ship them things they gave you for free
Here are the most frequently asked questions.
Along with the “Click to Cancel” rule, the city is implementing a “Junk Fees” rule, which requires businesses to advertise the total price of any good or service up front, including all mandatory fees.
Hidden charges often appear late in the purchasing process, after consumers have decided to buy. Those practices apply to a wide range of industries, including third-party delivery apps, hotels and ticketing platforms.
On average, a family in the city loses $3,200 per year to junk fees and hidden costs, Mamdani said during his announcement.
Businesses that violate the rules will be fined $525 per violation.
Mayor Zohran Mamdani is cracking down on “junk fees.” He announced the city will go after those hidden charges that often find their way onto hotel bills. NBC New York’s Andrew Siff reports.