New York City has become the first city in the United States to ban deceptive subscription practices that trap customers into paying for recurring charges such as gym memberships and streaming services, according to the city’s consumer protection office. The new rule, effective from October 1, includes hefty fines and promises aggressive enforcement. Companies that fail to provide a simple cancellation process could face penalties of $525 per user subscription, along with back fees and additional fines.
The city is also addressing so-called “junk fees” that inflate the final price of goods and services, including apartments and sporting events. A proposed rule requires sellers to advertise the total price upfront, including all mandatory charges and fees.
Samuel AA Levine, New York City's commissioner of consumer and worker protection, emphasized that "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" a subscription.
The new measures were announced at a press conference on July 10. The proposed fee rule could significantly impact New York’s housing market, where about 70% of residents rent.
Levine reflected on the regulatory history, noting that since the Reagan era, federal agencies like the FTC have largely stepped back from writing rules, allowing companies to self-regulate, which he said has resulted in "40 years of deceptive pricing."
At the federal level, a junk fee rule introduced by the Biden administration in 2024 faced opposition from the US Chamber of Commerce, which called it "an attempt to micromanage businesses’ pricing structures." Apartment fees were removed from that federal rule following lobbying by the real estate industry. Furthermore, a national click-to-cancel rule introduced by the Biden administration was struck down by a federal judge in 2025 just days before it was set to take effect due to procedural issues.
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