NEW YORK (Diya TV) — Mayor Zohran Mamdani announced Friday a first-in-the-nation “Click to Cancel” rule requiring New York City businesses to make subscription cancellations as simple as sign-ups, alongside a proposed rule mandating businesses disclose the full, all-in price of goods and services upfront.
Mamdani made the announcement alongside New York City Department of Consumer and Worker Protection Commissioner Samuel A.A. Levine and other city officials at a press conference. The rules implement Executive Orders 9 and 10, which Mamdani signed directing the DCWP to crack down on junk fees and deceptive subscription practices citywide.
“For years, companies have built their business model around making it harder for working people to hold onto their money,” Mamdani said. “Whether it’s hidden fees that suddenly appear at checkout or subscriptions that take one click to sign up for and a dozen steps to cancel, the result is the same.”
The Click-to-Cancel rule takes effect October 1, 2026, and applies to automatic renewal and continuous service subscriptions, requiring businesses to clearly disclose subscription terms and provide a straightforward cancellation process. The rule prohibits practices such as free trials that quietly convert into recurring charges and multi-step cancellation processes designed to discourage customers from canceling. City officials estimate the rule could save New Yorkers between $21.5 million and $162.5 million annually, according to projections from the Roosevelt Institute.
The proposed all-in pricing rule would require businesses to advertise the complete price of goods and services upfront, including mandatory charges such as service fees, convenience fees and processing fees, and would bar companies from misrepresenting the purpose, amount or refundability of such charges. Businesses charging mandatory fees would be required to fold them into the advertised price and document what the fees cover. The rule would apply to gyms, hotels and other consumer-facing businesses. Companies found in violation of either rule would face consumer restitution and civil penalties starting at $525 per violation.
The announcement builds on earlier steps by the Mamdani administration, including a rule banning hidden hotel fees. Levine, who previously served as director of the Federal Trade Commission’s Bureau of Consumer Protection under then-Chair Lina Khan, has said junk fees and subscription traps cost New York families an average of $3,200 per year.
City Council Member Harvey Epstein, who chairs the Council’s Consumer and Worker Protection Committee, and state Senator Kristen Gonzalez both voiced support for the rules at the announcement, framing them as part of a broader push by the administration to address affordability in the city.
