New York City Bans Deceptive Subscription Traps and Junk Fees

New York City has become the first U.S. city to ban deceptive subscription practices through a new Click-to-Cancel rule effective October 1, 2026. Led by Zohran Mamdani and Commissioner Samuel AA Levine, the policy requires companies to make cancelling automatic renewals as simple as the sign-up process. Businesses that trap customers in recurring charges face fines of $525 per violation plus consumer restitution.

Parallel to the subscription ban, the city proposed a Junk Fees rule, open for public comment on August 7, which requires sellers to advertise the total price of goods and services upfront. This measure specifically targets visitor services and the housing market, where officials claim hidden fees cost an average family of four roughly $3,200 per year. The Roosevelt Institute estimates these combined measures will save New Yorkers over $160 million annually.

These local actions revive consumer protections previously attempted by the Federal Trade Commission and the Joe Biden administration, both of which saw national versions of the rule vacated by federal courts in 2025. Additionally, the New York City Council has proposed a separate ban on surveillance pricing, which uses algorithmic data to charge different prices to different consumers based on personal habits.