New York City officials announced Friday that the city will become the first municipality in the United States to ban businesses from locking consumers into subscription traps, introducing what they are calling a groundbreaking consumer protection policy.
The announcement came jointly from the offices of New York City Mayor Zohran Mamdani and Department of Consumer and Worker Protection Commissioner Samuel Levine, who described the new rules as unlike anything previously enacted at the local government level in the country.
At the heart of the policy is a so-called “Click to Cancel” rule, which takes effect on October 1. The rule covers automatic renewal and continuous service subscriptions, requiring companies to clearly spell out subscription terms upfront and provide a simple, transparent way for customers to cancel — no hoops, no runarounds.
The policy also targets “junk” fees, requiring businesses to advertise the true, all-in price of goods and services from the start, including any mandatory charges or add-on fees that might otherwise be buried in the fine print.
City officials pointed to consumer reports estimating that hidden fees cost the average family of four roughly $3,200 every year — a figure they cited as a driving reason behind the new rules.
Companies found to be in violation of the policy will face consequences including repayment to affected consumers and civil penalties starting at $525 per violation.
The move follows a failed attempt at the federal level. Former President Joe Biden’s administration had pursued a similar national “Click to Cancel” rule, but a federal appeals court struck it down last year before it could take effect.
Mayor Mamdani, a democratic socialist who campaigned on a platform of making New York City more affordable for residents, took office in January.
