New York City adopts first-in-the-nation crackdown on ‘subscription traps’ as junk-fee fight expands

For years, consumer advocates have argued that companies deliberately make it easy to start subscriptions — and frustratingly difficult to end them.

Now New York City is becoming the first U.S. municipality to formally outlaw many of those practices.

Beginning Oct. 1, companies that sell subscriptions to New York City consumers will be required to provide a simple, straightforward cancellation process. Consumers who sign up online generally must be able to cancel online without navigating lengthy phone trees, mailing certified letters or visiting a physical location. Violations can trigger civil penalties of up to $525 per affected subscription, restitution of improperly collected fees and additional enforcement actions.

"This is about ending subscription tricks and traps," Consumer and Worker Protection Commissioner Samuel A.A. Levine said as the city announced the new rule.

National implications

Although the rule directly protects New York City residents, its effects may reach much farther.

Many national subscription businesses — including streaming services, fitness chains, software companies, meal kits and digital publications — may find it easier and less expensive to adopt a single cancellation process nationwide rather than maintain separate systems for New York customers.

Consumer advocates have long argued that so-called "dark patterns" intentionally keep customers paying for services they no longer want.

Common tactics include:

• requiring customers to call during limited business hours;
• forcing consumers through multiple retention screens;
• hiding cancellation links;
• requiring certified mail or written notices;
• making consumers speak with sales representatives before allowing cancellation.

The city's rule treats those practices as deceptive or unconscionable under local consumer protection law.

Junk fees also in the crosshairs

The subscription rule is only part of a broader affordability initiative.

City officials simultaneously proposed a separate regulation that would require businesses to advertise the full price of products and services—including all mandatory fees—up front.

The proposal could affect:

• apartment rentals;
• hotels;
• ticket sales;
• rental cars;
• entertainment venues; and
• other businesses that advertise artificially low prices before adding mandatory charges later in the purchasing process.

If adopted after public comment, landlords would be required to include mandatory recurring charges in advertised monthly rents rather than surprising tenants after they begin the leasing process, according to The Guardian.

Filling a federal gap

The city action comes after years of national debate over subscription cancellations.

The Federal Trade Commission approved a nationwide "Click-to-Cancel" regulation during the Biden administration, but a federal appeals court blocked the rule in 2025 on procedural grounds before it took effect.

That decision left consumers without a nationwide standard, creating an opening for states and cities to establish their own protections.

Levine, who previously served as director of the FTC's Bureau of Consumer Protection, has made subscription traps and junk fees among his top enforcement priorities since joining the city's consumer protection agency, the Consumer Finance Monitor noted.

Consumer advocates applaud

Consumer groups have argued that unwanted recurring subscriptions cost Americans billions of dollars each year because many consumers either forget about recurring charges or give up after encountering complicated cancellation procedures.

The Roosevelt Institute estimates New Yorkers alone could save as much as $162.5 million annually if deceptive subscription practices are eliminated. (The Guardian)

Business organizations, however, have historically argued that pricing and subscription rules impose unnecessary compliance costs and interfere with legitimate business practices.

The debate mirrors earlier national disputes over hotel resort fees, airline fees, apartment junk fees and "drip pricing" practices that reveal mandatory charges only near the end of checkout.

What consumers should do

Even before broader reforms spread, consumer advocates recommend:

• Review monthly bank and credit card statements for recurring charges.
• Cancel unwanted subscriptions immediately rather than waiting.
• Save screenshots or emails confirming cancellations.
• Report companies that continue billing after cancellation.
• Watch for mandatory fees that significantly increase advertised prices.

As states and cities increasingly pursue their own consumer protection rules, New York's action could become an important test case for whether local governments can succeed where federal regulators have faced legal setbacks.

Consumer Checklist — Escaping Subscription Traps

Before subscribing:

• Read the renewal terms.
• Find the cancellation method before signing up.
• Use a credit card if possible for stronger dispute rights.
• Set a calendar reminder before any free trial ends.

When canceling:

• Take screenshots of every step.
• Save confirmation emails or confirmation numbers.
• Check your next billing statement.
• If billing continues, dispute the charge promptly with your card issuer and file a complaint with the appropriate consumer protection agency.