Cancel Subscriptions With One Click: NYC Approves New Rules

NEW YORK, NY— The City introduced a proposed rule that would require businesses to advertise the full price of goods and services upfront, including mandatory fees, while adopting a final "Click-To-Cancel" rule requiring companies to make subscription cancellations as simple as signing up.

Mayor Zohran Mamdani said the measures target hidden fees and recurring charges that cost consumers money long after they stop using a service.

"For years, companies have built their business model around making it harder for working people to hold onto their money," Mamdani said. "If you can sign up with one click, you can cancel with one click."

The City estimates the Click-To-Cancel rule alone could save New Yorkers up to $162.5 million each year.

What Will Change For Consumers?

The proposed junk fee rule would require businesses to display the total price a customer will pay before checkout, including mandatory service charges, processing fees and similar costs.

Businesses also would have to explain what mandatory fees cover and whether those fees are refundable.

Companies that violate the rule could face consumer restitution and civil penalties beginning at $525 for each violation.

The proposal follows an executive order directing the Department of Consumer and Worker Protection to crack down on hidden fees across industries.

Which Businesses Could Be Affected?

City officials said hidden fees have become common across several industries, including hotels, ticketing platforms and third-party delivery services.

According to Consumer Reports, hidden fees cost the average family of four about $3,200 each year.

The proposed rule was published July 8. The city will accept public comments before holding a public hearing Aug. 7.

How Will Click-To-Cancel Work?

The final rule takes effect Oct. 1.

It applies to subscriptions that automatically renew or continue until canceled.

Businesses must clearly disclose subscription terms and provide a straightforward way for customers to cancel using a process that is as simple as enrollment.

The rule is designed to stop practices such as free trials that automatically convert into paid subscriptions and cancellation systems that require customers to navigate multiple screens or unnecessary steps.

Businesses that violate the rule also could face restitution and civil penalties beginning at $525 per violation.