Mayor Mamdani Announces Landmark “Click-To-Cancel" Consumer Protection Rules to 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  

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. 

 

“For years, companies have built their business model around making it harder for working people to hold onto their money,” said Mayor Mamdani. “Whether it’s hidden fees that suddenly appear at checkout or subscriptions that take one click to sign up for and a dozen steps to cancel, the result is the same: working people pay more while corporations profit. That ends now. If you can sign up with one click, you can cancel with one click.” 

 

“Every dollar a family loses to a hidden fee or a subscription they couldn’t cancel is a dollar stolen from them, a dollar that could have gone toward rent, groceries, childcare, or anything else. And just as important, the hours spent trying to cancel a subscription or membership you no longer want is stolen time,” said Deputy Mayor for Economic Justice Julie Su. “That’s what affordability means in practice—closing the small holes that drain people’s paychecks and their time month after month. These rules put New Yorkers back in control.” 

 

“The Mamdani Administration is shutting the door on the era of fleecing New Yorkers with junk fees and subscription traps,” said Commissioner Samuel A.A. Levine. “These two rules will ensure that the price you see is the price you pay—no hidden charges, no endless subscription services and no advantages for businesses that cheat. Requiring companies to compete on price will lower costs for all New Yorkers and level the playing field for honest businesses.”

 

“Nobody should be trapped in subscriptions they can’t escape or stuck paying junk fees they can’t avoid,” said Lina Khan, former FTC Chair. “These predatory tactics cheat people out of billions of dollars each year. With today’s rules, Commissioner Levine and DCWP are cracking down on corporate ripoffs, protecting families and honest businesses alike. The Mamdani administration’s work to tackle the affordability crisis and promote economic fairness continues to set a new standard nationwide, modeling effective governance and a relentless focus on using all of the city’s levers to improve life for New Yorkers.” 

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.

 

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 https://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.