New York City has implemented a new regulation designed to curb "junk fees" by making it significantly easier for consumers to cancel unwanted subscriptions. The city’s Department of Consumer and Worker Protection (DCWP) announced the new "Click-to-Cancel" rule, which officials say will save New Yorkers approximately $162.5 million each year. The regulation takes effect on October 1, with businesses found to be in violation facing fines of $525 per offense.
The changes were announced at Manhattan’s Asser Levy Recreational Center on July 10 by city officials including Mayor Zohran Mamdani and DCWP Commissioner Samuel A.A. Levine. The initiative aims to address the common practice where signing up for services, from gym memberships to streaming platforms, is easy, but canceling is deliberately complicated.
"Right now, companies make it easy to sign up for things and hard to cancel them," said Deputy Mayor for Economic Justice Julie Su. "They advertise one price and charge you another."
Mayor Mamdani drew a parallel to a scene from the 2006 Adam Sandler film “Click,” describing how some businesses disguise recurring fees and hidden charges as desirable offers. "Whether it’s an internet provider or a commercial gym, too many in our city have made and developed the bad habit of disguising cornflakes as gold," Mamdani stated.
He further explained that New Yorkers frequently encounter hidden fees across various services, including those from airlines, credit card companies, hotels, and streaming providers. These costs, often unstated during the initial sign-up and difficult to cancel, accumulate significantly for consumers.
According to Consumer Reports, these hidden fees can cost the average family of four around $3,200 annually.
In addition to the Click-to-Cancel rule, the Mamdani administration has proposed a separate measure requiring fully transparent, all-in pricing for a range of services. A public comment period and hearing for this additional rule are scheduled for August 7.
"The Mamdani Administration is shutting the door on the era of fleecing New Yorkers with junk fees and subscription traps," Commissioner Levine said. "These two rules will ensure that the price you see is the price you pay—no hidden charges, no endless subscription services and no advantages for businesses that cheat. Requiring companies to compete on price will lower costs for all New Yorkers and level the playing field for honest businesses."