New York unveils 'click to cancel' rule, targeting subscription traps and hidden fees

New York City is moving to make one of modern life's most frustrating budget drains easier to escape. 

Mayor Zohran Mamdani has unveiled a new "click to cancel" rule aimed at subscription traps and hidden junk fees that can quietly chip away at household finances.

What happened?

According to ABC7 New York, on July 10, Mamdani introduced the proposal alongside Samuel A.A. Levine, who leads the city's Department of Consumer and Worker Protection, and other officials.

Beginning in October, businesses will have to make getting out of a subscription at least as simple as getting into one.

Officials told ABC7 New York that the click-to-cancel measure by itself could save New Yorkers up to $162.5 million a year. They said the broader protections are meant to cover recurring subscription charges and unexpected fees, including those tied to businesses like gyms and hotels.

Levine said, "I think many of us have come to feel this is inevitable."

Former Federal Trade Commission Chair Lina Khan, who is now advising Mamdani, is helping push a city version of a rule that had previously moved forward at the federal level under her leadership at the Federal Trade Commission. That earlier effort was later blocked in court.

Why does it matter?

Recurring subscriptions can seem minor on their own, but monthly charges for streaming, delivery, fitness, travel perks, and bundled family plans can add up quickly. 

Hidden fees can do the same, driving up the final price of a purchase after shoppers have already invested time and attention.

For some residents, the strain is personal. Financial District resident Paige Southworth told ABC7, "Like we have so many subscriptions that we barely even use or like family plans."

When consumers have to spend extra time hunting down cancellation buttons, calling customer service, or decoding checkout totals, they lose both money and control over their budgets.

The federal version has stalled. City-level rules could become a test of whether governments can still rein in business practices that rely on confusion and friction to keep revenue flowing.

What's being done?

"If you can sign up with one click, you can cancel with one click," Mamdani said. 

There are financial consequences attached to the rule. ABC7 reported that companies found in violation could be required to reimburse consumers and face civil penalties starting at $525 per offense.

Levine said: "The feeling like we're navigating a minefield when we're shopping is simply the price of modern convenience." 

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