New York City Becomes First US City to Ban Deceptive Subscription Practices

NYC adopts a new rule requiring companies to provide simple cancellation for subscriptions, with fines up to $525 per user. A separate proposed rule targets 'junk fees' across housing, events, and rentals — requiring total price disclosure upfront.

New York City has become the first city in the United States to adopt a rule banning deceptive subscription practices, taking aim at the maze of recurring charges that trap consumers into paying for gym memberships, streaming services, and other services they no longer want.

The new rule, effective October 1, 2026, requires companies to provide a simple way to cancel subscriptions. Violators face fines of $525 per user subscription, plus back fees and additional penalties. "People shouldn't have to wait on hold for half an hour or send a certified letter or show up to a store in person in order to cancel," said Samuel AA Levine, the city's commissioner of consumer and worker protection and a former head of consumer protection at the Federal Trade Commission.

The city is also targeting so-called "junk fees" — hidden charges that inflate the final price of everything from apartment rentals to sporting events. A proposed rule would require sellers to advertise the total price upfront, including all mandatory charges. In New York City, where roughly 70% of residents rent, the impact could be significant: management companies have increasingly tacked on fees for "boiler management" and "lifestyle" charges, pushing real rental costs hundreds of dollars above advertised prices.

The moves come from Mayor Zohran Mamdani's administration and represent an aggressive push to address the city's affordability crisis. The Roosevelt Institute estimates the subscription rule alone could save New Yorkers as much as $162.5 million per year.

The city-level action fills a gap left by federal inaction. A national click-to-cancel rule introduced by the Biden administration was struck down by a federal judge in 2025 on procedural grounds, days before it was set to take effect. The Trump administration's FTC subsequently declined to revive it. Industry groups have consistently fought such rules; the US Chamber of Commerce previously called the Biden-era junk fee proposal "an attempt to micromanage businesses' pricing structures," and apartment fees were ultimately cut from that federal rule after real-estate industry lobbying.

The junk fee rule is now open for public comment and a hearing, with Levine saying he hopes to finalize it by the end of 2026.

Sources: The Guardian, Hacker News discussion