New York City has finalized a rule effective Oct. 1 that requires easy cancellation methods for recurring subscriptions and allows fines of $525 per noncompliant subscription. Officials are also pursuing a proposed ban on junk fees that would force companies to display full prices up front; that proposal must still pass a public comment period and hearing. The subscription rule could save New Yorkers an estimated $162.5 million annually and aims to reduce surprise charges and improve price transparency.
New York Will Fine Companies $525 Per Hard‑to‑Cancel Subscription — Junk Fees Could Be Next
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Canceling a subscription in New York City may soon be easier for consumers — and more costly for companies that make cancellations difficult. City officials have finalized a rule requiring simple cancellation methods for recurring services and are pursuing a separate proposal to ban so‑called junk fees that hide the true price from customers.
What the Subscription Rule Requires
Beginning Oct. 1, the new rule covers recurring services such as gym memberships, streaming platforms and other automatically renewing contracts. Businesses that do not provide a clear, easy way to cancel could face fines of $525 per subscription, plus back fees and other penalties, city officials say. The Department of Consumer and Worker Protection, led by Commissioner Samuel A.A. Levine, said the administration will enforce the rule aggressively once it takes effect.
“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,” Samuel A.A. Levine told The Guardian.
What the Proposed Junk‑Fee Ban Would Do
Separately, the city is considering a proposal that would require businesses to display full prices up front instead of adding mandatory fees later in the checkout process. If it survives public comment and a hearing, New York City would be the first U.S. city to adopt such a ban. Housing listings provide a clear example: landlords would need to fold mandatory annual charges into the advertised monthly rent, instead of tacking them on later and understating the advertised price.
The change is meant to reduce surprise charges that can erode household budgets — particularly for renters, travelers and anyone purchasing services with automatic renewals or hidden add‑ons.
Impact And Background
According to an estimate from the Roosevelt Institute cited by The Guardian, the subscription rule alone could save New Yorkers up to $162.5 million a year. City officials say the measures are part of a broader effort to make everyday costs more transparent. Levine criticized long‑standing industry practices and lax federal oversight for allowing deceptive pricing to persist for decades.
The junk‑fee proposal still must clear a public comment period and a hearing before it can be adopted; if approved, it would also affect visitors who encounter undisclosed hotel or rental‑car charges. City officials say they hope to complete the process by the end of the year.
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