New York City officials adopted a rule banning deceptive subscription practices, making it the first U.S. city to target companies that trap customers in recurring charges.
The rule takes effect Oct. 1 and applies to subscriptions including gym memberships and streaming services. Companies that fail to offer a simple cancellation method could face $525 per user subscription, back fees and additional fines.
Samuel AA Levine, commissioner of the city’s Department of Consumer and Worker Protection, said customers should not have to “wait on hold for half an hour” to cancel a subscription.
The city also proposed a rule requiring sellers to advertise the full price of goods and services upfront, including mandatory fees. The proposal could affect apartment listings, hotels, rental cars and other transactions involving added charges.
The Roosevelt Institute estimates the subscription rule could save New Yorkers up to $162.5 million a year. The city will take public comments on the junk-fee proposal before holding a hearing.
New York City Subscription Ban Draws Calls for National Action
The measure also drew online discussion over whether similar consumer protections should extend beyond New York City.
“Needs to be a national law ASAP,” one user wrote.
Another urged pressure on local officials elsewhere, writing, “contact them frequently asking why they haven’t instituted such rules yet and if they are against them, demand explanations.”
A separate user pointed to another pricing issue raised in the source material: “Please stop dynamic pricing on basic goods or anything that’s based on personal data!”
Others described the rule as a broader model for government action. “Wow, a government actually working for the people,” one user wrote.
Some responses questioned the scope or enforcement of the measure. “Perhaps the first US city, but California had this ban for a while,” one user wrote, while another said, “hardest part of this is enforcement.”
The junk-fee proposal remains subject to public comment and a hearing.
