New York City Mayor Zohran Mamdani has announced a first-in-the-nation municipal “click-to-cancel” consumer protection rule designed to make it as easy for residents to cancel subscriptions as it is to sign up for them, while also cracking down on hidden junk fees.
The proposed regulation would require businesses operating in New York City to provide consumers with a cancellation process that is as simple as the original sign-up method. Under the rule, if a customer subscribes online with a single click, they must be able to cancel online with a similarly straightforward process.
“If you can sign up with one click, you can cancel with one click,” Mamdani said while announcing the initiative, describing subscription traps and hidden fees as unnecessary financial burdens on New Yorkers.
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City officials estimate the new protections could save New Yorkers approximately $162.5 million annually by reducing unwanted subscription charges and deceptive billing practices. Businesses that violate the regulation could face a $525 fine per violation and be required to refund improperly collected fees. The rule is expected to take effect on Oct. 1, subject to the city’s rulemaking process.
The announcement also included a proposed rule targeting so-called “junk fees,” which would require businesses to disclose the full price of products and services upfront rather than adding mandatory charges later in the purchasing process. The proposal would apply to sectors including housing, hotels, entertainment tickets and other consumer services. A public hearing on the junk fee proposal is scheduled for Aug. 7.
The city’s Department of Consumer and Worker Protection, led by Commissioner Samuel Levine, will oversee enforcement. Levine, who previously served at the Federal Trade Commission under former Chair Lina Khan, said the measures are intended to increase pricing transparency and strengthen consumer rights.
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The city initiative follows the collapse of a similar federal “click-to-cancel” rule adopted by the Federal Trade Commission in 2024. That rule was struck down by a federal appeals court in 2025 on procedural grounds before it could take effect. New York City’s regulation seeks to establish comparable protections at the municipal level.
Consumer advocates have welcomed the proposal, arguing that difficult cancellation processes and hidden fees have become increasingly common across industries ranging from streaming services and gyms to software subscriptions and online memberships. Business groups, however, are expected to scrutinize the new requirements during the public comment period.