Uploaded July 2026 | Updated September 2026, 2 weeks ago
Rules Ban Subscription Traps and Junk Fees
First-in-the-nation municipal “Click-To-Cancel” rule expected to save New Yorkers hundreds of millions per year
NEW YORK – Today, Mayor Zohran Kwame Mamdani and New York City Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine announced sweeping new consumer protections that will crack down on junk fees and subscription traps, making it easier for New Yorkers to know the real price of what they are buying and to stop paying for the services they no longer want.
Following Mayor Mamdani’s Executive Orders 9 and 10, the City announced a proposed rule requiring transparent, all-in pricing that bans hidden junk fees, alongside a final “Click to Cancel” rule that guarantees consumers can cancel subscriptions as easily as they sign up for them.
Together, these rules represent one of the strongest municipal consumer protection efforts in the country and build upon Mayor Mamdani’s affordability agenda, including the City’s rule banning hidden hotel fees. The Click-to-Cancel Rule alone is estimated to save New Yorkers up to $162.5 million per year.
Proposed “Junk Fees” Rule
The proposed rule requires businesses to advertise the full price of goods and services upfront, including all mandatory charges and fees. This is the first step toward implementing Mayor Mamdani’s Executive Order 9, directing DCWP to crack down on junk fees citywide.
Businesses would be prohibited from misrepresenting the purpose, amount or refundability of any fees. Companies that charge “service charges,” “processing fees” or similar mandatory charges would be required to include those fees in the advertised price and document what those fees actually cover. Businesses that violate the rule would face restitution to harmed consumers and civil penalties beginning at $525 per violation. To help consumers and businesses understand the proposed rule, DCWP has also released an explainer video outlining what the rule would do and how all-in pricing would work : tiktok.com/@hellodcwp/video/7660917795739176223
The proposed rule was published July 8th and will be followed by a public comment period and public hearing on August 7th.
“Junk fees” are hidden mandatory charges that appear late in the purchasing process, often at checkout, after consumers have already committed to a purchase. The practice has become widespread across industries including third-party delivery apps, hotels and ticketing platforms. According to Consumer Reports, hidden fees cost the average family of four an estimated $3,200 each year.
“Click-To-Cancel” Rule
This final Click-to-Cancel rule takes effect on October 1, 2026, making New York City the first municipality in the nation to require businesses to provide simple, straightforward subscription cancellation.
The rule applies to automatic renewal and continuous service subscriptions and requires businesses to clearly disclose subscription terms and provide an easy cancellation process. New Yorkers can learn more at nyc.gov/click-to-cancelnyc.gov/click-to-cancel.
The rule implements Executive Order 10 and is projected to save New Yorkers between $21.5 million to $162.5 million annually, according to the Roosevelt Institute.
Too often, consumers are forced through confusing and time-consuming cancellation processes, from “free trials” that quietly become recurring charges to endless online hurdles designed to discourage cancellation. The rule prohibits those practices and requires straightforward, transparent cancellation mechanisms.
Businesses that violate the rule will be subject to restitution for consumers and civil penalties beginning at $525 per violation.
392 Asser Levy Place
New York, NY
July 10, 2026
Rules Ban Subscription Traps and Junk Fees
First-in-the-nation municipal “Click-To-Cancel” rule expected to save New Yorkers hundreds of millions per year
NEW YORK – Today, Mayor Zohran Kwame Mamdani and New York City Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine announced sweeping new consumer protections that will crack down on junk fees and subscription traps, making it easier for New Yorkers to know the real price of what they are buying and to stop paying for the services they no longer want.
Following Mayor Mamdani’s Executive Orders 9 and 10, the City announced a proposed rule requiring transparent, all-in pricing that bans hidden junk fees, alongside a final “Click to Cancel” rule that guarantees consumers can cancel subscriptions as easily as they sign up for them.
Together, these rules represent one of the strongest municipal consumer protection efforts in the country and build upon Mayor Mamdani’s affordability agenda, including the City’s rule banning hidden hotel fees. The Click-to-Cancel Rule alone is estimated to save New Yorkers up to $162.5 million per year.
Proposed “Junk Fees” Rule
The proposed rule requires businesses to advertise the full price of goods and services upfront, including all mandatory charges and fees. This is the first step toward implementing Mayor Mamdani’s Executive Order 9, directing DCWP to crack down on junk fees citywide.
Businesses would be prohibited from misrepresenting the purpose, amount or refundability of any fees. Companies that charge “service charges,” “processing fees” or similar mandatory charges would be required to include those fees in the advertised price and document what those fees actually cover. Businesses that violate the rule would face restitution to harmed consumers and civil penalties beginning at $525 per violation. To help consumers and businesses understand the proposed rule, DCWP has also released an explainer video outlining what the rule would do and how all-in pricing would work : tiktok.com/@hellodcwp/video/7660917795739176223
The proposed rule was published July 8th and will be followed by a public comment period and public hearing on August 7th.
“Junk fees” are hidden mandatory charges that appear late in the purchasing process, often at checkout, after consumers have already committed to a purchase. The practice has become widespread across industries including third-party delivery apps, hotels and ticketing platforms. According to Consumer Reports, hidden fees cost the average family of four an estimated $3,200 each year.
“Click-To-Cancel” Rule
This final Click-to-Cancel rule takes effect on October 1, 2026, making New York City the first municipality in the nation to require businesses to provide simple, straightforward subscription cancellation.
The rule applies to automatic renewal and continuous service subscriptions and requires businesses to clearly disclose subscription terms and provide an easy cancellation process. New Yorkers can learn more at nyc.gov/click-to-cancelnyc.gov/click-to-cancel.
The rule implements Executive Order 10 and is projected to save New Yorkers between $21.5 million to $162.5 million annually, according to the Roosevelt Institute.
Too often, consumers are forced through confusing and time-consuming cancellation processes, from “free trials” that quietly become recurring charges to endless online hurdles designed to discourage cancellation. The rule prohibits those practices and requires straightforward, transparent cancellation mechanisms.
Businesses that violate the rule will be subject to restitution for consumers and civil penalties beginning at $525 per violation.
392 Asser Levy Place
New York, NY
July 10, 2026
