New York City Bans $525 Subscription Traps, Targets Junk Fees From October 1
Updated
Updated · The Guardian · Jul 10
New York City Bans $525 Subscription Traps, Targets Junk Fees From October 1
3 articles · Updated · The Guardian · Jul 10
Summary
October 1 marks the start of New York City’s new subscription rule, which lets regulators fine companies $525 per user if they make cancellations harder than sign-ups.
The rule targets recurring charges for services such as gyms and streaming, and officials estimate it could save New Yorkers up to $162.5 million a year.
A separate proposed rule would force businesses to show total prices upfront, including mandatory fees; if adopted, New York would become the first U.S. city to ban such junk fees.
Housing could feel the biggest effect because about 70% of city residents rent, and mandatory apartment fees would have to be folded into the advertised monthly price after public comment and a hearing.
The city’s push follows the 2025 court defeat of a federal click-to-cancel rule and comes as industry groups continue to resist fee and pricing restrictions.
Will NYC’s war on junk fees just lead to higher sticker prices for everyone?
Is New York City's consumer protection plan the new blueprint for cities nationwide?
NYC’s 2026 Crackdown on Hidden Junk Fees: New Rules Target Hotels, Subscriptions, and Event Tickets to Save Consumers $65 Million Annually
Overview
New York City, led by Mayor Zohran Mamdani and the Department of Consumer and Worker Protection, is taking an aggressive stance on price transparency by banning hidden junk fees and deceptive practices. This initiative is driven by widespread consumer frustration, as shown by over 300 complaints in 2025 about hidden hotel fees and unexpected credit card holds. Many hotels advertise low base rates but reveal extra charges later, making it hard for consumers to know the true cost of their stay. The new rules aim to make NYC more affordable and ensure residents and visitors see clear, upfront pricing.