Mamdani Administration Announces Landmark Consumer Protection Rules to Ban Subscription Traps and Junk Fees
July 10, 2026
Watch the video here at https://www.youtube.com/watch?v=sT5i5yxD0nk
First-In-The-Nation Municipal “Click to Cancel” Rule Estimated to Save New Yorkers Millions
NEW YORK, NY – Today, Commissioner Samuel A.A. Levine and the New York City Department of Consumer and Worker Protection (DCWP) announced a proposed rule that would ban junk fees in New York City by requiring transparent all-in pricing, as well as the adoption of the final “Click-to-Cancel” rule that prohibits subscription traps and ensures that New Yorkers can easily cancel services. Following Mayor Mamdani’s Executive Orders 9 and 10, these two new safeguards will dramatically strengthen consumer protections against deceptive and unconscionable practices and build upon DCWP’s existing affordability efforts, including the Department’s final rule banning hidden hotel fees. The rules provide real economic justice protections for New Yorkers as DCWP, with the Click-to-Cancel Rule alone projected to save New Yorkers up to $162.5 million per year.
“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."
“For too long, dominant New York corporations have used deceptive, hidden fees and confusing subscription traps to squeeze every dollar out of working New Yorkers and local businesses,” said Pat Garofalo, Director of State and Local Policy at the American Economic Liberties Project. “We commend the New York City Department of Consumer and Worker Protection for declaring that these abusive practices will no longer be tolerated in the five boroughs, joining a nationwide state and local movement to ensure that prices are fair and transparent.”
“Performing musicians typically have no control over ticket fees or company policies, but when frustrated fans get saddled with high fees, inadequate disclosure and unpleasant surprises, we hear their complaints. When pricing is clear, fans can afford more live music and the people who make it can keep filling rooms across this city,” said AFM Local 802. “We thank Mayor Mamdani and Commissioner Levine for taking on the junk fees that have squeezed audiences and artists alike. New York's musicians are proud to stand behind rules that make live music more affordable and honest for everyone.”
“Hidden fees and subscription traps make everyday life more expensive and undermine trust in the marketplace," said Susan Weinstock, CEO of the Consumer Federation of America. "Requiring honest, upfront pricing and making it easy for consumers to cancel unwanted subscriptions are common-sense protections that lower costs, promote fair competition, and reward businesses that play by the rules. At a time when federal regulators are failing to meet the moment, it is encouraging to see local government stepping up to protect consumers. We hope this action inspires communities across the country to follow New York City's lead.”
“New Yorkers are telling us they are under enormous financial strain. The Community Service Society of New York’s (CSS) annual survey found that more than one-third of New Yorkers are just getting by or unable to make ends meet, and more than one in four couldn’t cover a $400 emergency expense," said Rachel Swaner, CSS Vice President of Policy, Research and Advocacy. "Hidden fees and subscription traps make it even harder for families to stretch already tight budgets. These new rules are an important step toward making the marketplace more transparent, fair, and affordable."
“Junk fees and subscription traps siphon hard-earned money from New Yorkers, hitting low-income families and communities already struggling with the high cost of living especially hard,” said Elizabeth M. Lynch, Director of Economics Equities with The Legal Aid Society. “These rules will provide critical protections against deceptive practices by requiring transparent pricing and making it easier for consumers to cancel unwanted subscriptions. We commend the City for advancing these common-sense safeguards and pairing them with meaningful enforcement, restitution for harmed consumers, and real consequences for businesses that break the law.”
“Junk fees and impossible-to-cancel contracts make life unaffordable for hard-working New Yorkers,” said Senior Staff Attorney Ariana Lindermayer of Mobilization for Justice. "MFJ applauds DCWP for stepping up and filling the void created by New York State's weak consumer protection law.”
“New York City’s proposal to combat misleading, surprise junk fees, and its new rule to stop businesses from trapping consumers into paying recurring charges on unwanted subscriptions, will not only help residents avoid needless expenses, they will also promote a safer, more accountable marketplace,” said Christine Hines, senior policy director at the National Association of Consumer Advocates.
“Implementing click-to-cancel and all-in pricing rules will help consumers fight back against subscription traps and junk fees that can quickly add up into serious financial burdens for our clients,” said Julie Howe, supervising attorney with New York Legal Assistance Group (NYLAG)’s Consumer Protection Unit. “Predatory tricks unfairly burden low-income New Yorkers who do not have the precious time to untangle the purposefully confusing and time-consuming web to unsubscribe. By becoming the first municipality nationwide to implement these protections, our city will be in line with states like California that adopted similar rules that protect consumers and save residents from getting nickel-and-dimed out of critical funds that could mean the difference between putting food on the table or falling behind on bills.”
“Today’s rules send a clear message: in a fair economy, companies can’t make a quick buck at our expense,” said Protect Borrowers legal director Winston Berkman-Breen. “New Yorkers shouldn’t be subjected to inflated costs or subscription traps, and thanks to the Mamdani Administration, they won’t be. The Mayor and Commissioner Levine continue to lead the nation in combatting the affordability crisis.”
Proposed “Junk Fees” Rule
This proposed rule mandates all-in pricing, requiring businesses to advertise the total price for any good or service, including all mandatory additional charges and fees, upfront. DCWP proposes this rule as part of its implementation of Mayor Mamdani’s Executive Order 9, which directs the agency to take action against junk fees citywide.
The rule also prohibits businesses from misrepresenting the nature, purpose, amount, or refundability of any fees, or what the fee actually covers. Businesses that purport to charge fees for specific purposes – such as “service charges,” “processing fees,” or “destination fees” – would need to not only include those fees in their advertised price, but also document the basis for these fees. This provision takes direct aim at mandatory fees being used as cover to deceptively raise prices.
Businesses that violate the rule would be liable for restitution to harmed consumers and civil penalties, with fines starting at $350 per violation. The proposed rule’s publication on July 8, 2026 will be followed by a public comment period and public hearing.
In this context, "junk fees” are hidden charges that businesses exclude from the advertised price, only to reveal them later in the transaction, often at checkout. This “bait and switch” tactic has become widespread across many industries, including third-party delivery apps, hotels, ticket sellers, and many others. Nationally, junk fees cost American consumers tens of billions of dollars each year, with the average family of four paying an estimated $3,200 in hidden fees annually, according to Consumer Reports.
“Click-To-Cancel" Rule
This final rule goes into effect on October 1, 2026 and gives DCWP citywide enforcement authority to ensure New Yorkers can easily cancel subscriptions and end memberships. It requires clear disclosures and affirms consumers’ rights when purchasing, enrolling in or canceling subscriptions for services or goods. It applies to any subscription that qualifies as an automatic renewal or continuous service offer. New Yorkers can learn more at nyc.gov/click-to-cancel.
DCWP finalizes this rule as part of its implementation of Mayor Mamdani’s Executive Order 10, which directs the agency to take action against subscription traps citywide. The rule is estimated to save New Yorkers from $21.5 million to $162.5 million per year in fees and subscription cancellations, according to the Roosevelt Institute.
Too often, bad actors force consumers through confusing, time-consuming hurdles to cancel unwanted subscriptions—from “free trials” that quietly convert into costly charges to cancellation processes buried in endless steps or unclear instructions. This rule targets those practices directly, requiring straightforward, transparent cancellation mechanisms. Businesses that violate the rule are liable for restitution to harmed consumers and civil penalties, with fines starting at $525 per violation.
New York City is the first municipality in America to implement a Click-to-Cancel rule. Under Mayor Mamdani’s leadership, the agency will continue to deliver nation-leading consumer protections to advance affordability and hold bad actors accountable.
DCWP is the nation’s leading municipal enforcement agency, charged with delivering economic justice, bringing New Yorkers real economic relief and protect them from predatory, deceptive and unfair practices that violate their rights as consumers and workers. This includes pioneering cutting-edge protections for New Yorkers, such as the City’s Consumer Protection Law, Protected Time Off Law, Fair Workweek Law, and Delivery Worker Laws. Across New York City, DCWP levels the economic playing field by licensing more than 45,000 businesses in over 45 industries and providing essential services including free tax preparation and financial counseling to ensure New Yorkers keep more of what they earn and can plan for their futures. This work ensures that New York City is a fairer, more affordable place to live for all. For more information about DCWP and its work, visit DCWP at nyc.gov/DCWP or follow on X, Facebook, Instagram, TikTok, and YouTube.
Media Contact:
Stephany Vasquez Sanchez
Department of Consumer and Worker Protection
(212) 436-0042
press@dcwp.nyc.gov