NYC Becomes First US City to Ban Deceptive Subscription Practices
Original: New York City to to ban deceptive subscription practices
Why This Matters
NYC's first-in-the-nation rule sets a potential precedent for consumer protection against hidden fees and subscription traps across the US.
New York City adopted a rule effective October 1 banning deceptive subscription practices and targeting junk fees. Companies that fail to provide easy cancellation options face fines of $525 per user subscription, plus back fees and additional penalties.
New York City's consumer protection office announced a new rule, effective October 1, that prohibits companies from using deceptive tactics to trap customers in gym memberships, streaming services, and other recurring charges — making NYC the first US city to implement such a ban.
Under the rule, companies must provide a simple cancellation method. Violators face fines of $525 per user subscription, back fees, and additional penalties. Samuel AA Levine, the city's commissioner of consumer and worker protection, stated: '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.'
The city also proposed a separate rule targeting 'junk fees,' requiring sellers to advertise the total price of any good or service — including all mandatory charges — upfront. This proposed rule could significantly impact NYC's housing market, where approximately 70% of residents rent. Apartment renters in the US have faced a growing wave of add-on fees such as 'boiler management' and 'lifestyle' charges, which can raise actual rental costs hundreds of dollars above listed prices. The junk fee rule will undergo public comment and hearings before taking effect.