New York Mayor Mamdani announced on July 10th the official launch of the first local government-level “Click to Cancel” consumer protection regulation in the United States. The regulation requires businesses to allow consumers to cancel automatic renewal services in the same easy manner as they subscribed. Furthermore, it introduces comprehensive measures to combat “junk fees,” requiring merchants to disclose all mandatory fees upfront to enhance price transparency and alleviate residents’ financial burdens. The new regulation will take effect on October 1st of this year.
During a press conference, Mayor Mamdani stated that many companies exploit intricate cancellation processes or hidden fees to keep consumers unknowingly paying, creating what is known as a “subscription trap.”
“Whether it’s hidden fees suddenly appearing at checkout or subscription services that require a dozen steps to unsubscribe after registering with just a click, the outcome is the same: working-class individuals pay more while companies profit,” Mamdani said. “This practice must end. If registering only takes a click, then canceling should too.”
According to the new regulation released by the New York City Department of Consumer and Worker Protection (DCWP), businesses providing services like gym memberships, video streaming, media subscriptions, software services, and other auto-renewal plans must allow consumers to cancel in the same manner as they subscribed. For instance, if individuals subscribed online through a website or mobile app, they must also be able to cancel with a single click online and should not be required to do so over the phone, via email, or in-person at a store, nor should they face deliberately lengthy processes, sales pitches, or other obstacles to canceling subscriptions.
The city government stated that violators of the regulation would not only have to refund relevant fees to consumers but could also face civil fines of at least $525 per violation. According to the city government’s estimation, the “Click to Cancel” measure alone could save New York City residents approximately $160 million annually.
In addition to streamlining subscription systems, the city government is also concurrently pushing forward a policy to combat “junk fees,” requiring businesses to fully disclose all mandatory charges in advertisements and during transactions. They must not delay revealing service fees, management fees, or other additional charges until consumers are at the checkout. This rule will encompass various consumption areas such as housing leases, entertainment tickets, and travel accommodations. As it still needs to undergo public hearings, the city government aims to formally implement this regulation by the end of this year.