politics
New York City Adopts Rule Requiring Easy Subscription Cancellations Starting October
The city became the first in the US to ban companies from trapping customers in recurring charges for services like gyms and streaming. It also proposed rules requiring total prices to be advertised upfront, including for rentals.
Jul 10, 7:00 AM·1m read1 source
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New York City adopted a rule banning companies from using deceptive subscriptions to trap customers into paying recurring charges for gym memberships, streaming services and other services. The rule takes effect on 1 October and imposes fines of $525 per subscription plus back fees and additional penalties for companies that fail to offer a simple cancellation method.
Mayor Zohran Mamdani and commissioner Sam Levine announced the measure at a press conference on 21 January 2026 at the Whitney Museum of American Art.
The Guardian reported that New York would be the first US city to implement such a ban on deceptive subscription practices. The city also proposed a separate rule requiring sellers to advertise the total price for any good or service, including all mandatory additional charges, up front.
If adopted, the rule would apply to apartment rentals, where about 70% of city residents pay rent, and to hotels and rental car agencies that serve visitors.
Samuel AA Levine, the city’s commissioner of consumer and worker protection, said people should not have to wait on hold for half an hour or send a certified letter to cancel a subscription. ” The subscription rule could save New Yorkers as much as $162.5 million per year, according to an estimate from the Roosevelt Institute.
The junk-fee rule would require any mandatory fees, including annual ones, to be included in the stated monthly rental price.
The New York City council has proposed an additional rule banning surveillance pricing, in which companies charge different prices based on algorithmic data from consumer habits. Maryland banned the practice in April, while Colorado’s governor vetoed a similar measure last month.
