New York City Mayor Enacts 'Click to Cancel' Rule, Banning Hidden Fees
New York City has become the first city in the United States to require companies to make it as easy to cancel subscriptions as it is to sign up for them. The new ‘Click to Cancel’ rule, along with a ban on hidden junk fees, was announced by Mayor Zohran Kwame Mamdani and the Department of Consumer and Worker Protection (DCWP).
Mayor Mamdani stated that for years, companies have built business models that make it difficult for working people to save money. ‘Whether it’s a surprise fee at checkout or a subscription that takes one click to start but a dozen frustrating steps to end, the result is the same: everyday people pay more while big companies rake in profits. That ends now,’ he said. ‘If you can sign up with one click, you deserve to cancel with one click too.’
The ‘Click to Cancel’ rule, which has been finalized and will take full effect on October 1, 2026, requires businesses to provide a cancellation mechanism that is identical to the sign-up method. For example, a subscription started online must be cancellable online. The rule also prohibits companies from forcing consumers to call, mail, or visit in person to cancel a service that was initiated digitally.
A second, complementary rule mandates transparent pricing by requiring all mandatory fees to be included in the advertised price. This targets so-called ‘junk fees’ that are often added at the final stage of a transaction, particularly in food delivery, hotel bookings, and ticket sales. According to a Consumer Reports analysis, such hidden fees cost the average American family $3,200 per year. The city estimates the combined rules could save New Yorkers over $162 million annually. Violators face fines starting at $525 per infraction and must return any illegally collected money.
Former Federal Trade Commission Chair Lina Khan praised the initiative, calling it a new national standard for consumer protection. ‘These predatory tactics cost the public billions of dollars each year,’ she said. ‘New York City’s rules set a new benchmark for the country in protecting consumers and honest businesses.’