New York City enforces click‑to‑cancel subscription rule and targets junk fees

Effective Oct. 1, New York City will require businesses that offer recurring services—such as gym memberships, streaming platforms and other subscriptions—to provide a simple, online cancellation method. Companies that fail to comply could be fined $525 per subscription, plus back‑fees and penalties, according to the Department of Consumer and Worker Protection. Commissioner Samuel A. A. Levine said the rule aims to stop "hidden add‑on fees" that drain household budgets.

The city is also advancing a separate proposal to ban so‑called junk fees by obliging firms to disclose full prices upfront, including in housing ads. If adopted, the junk‑fee rule would make New York the first U.S. municipality to prohibit undisclosed charges, potentially saving residents up to $162.5 million annually. Mayor Zohran Mamdani’s administration says enforcement will be aggressive once the measures are finalized.