AI Generated Image
Mamdani Announces 'Click-to-Cancel' Rule to Combat Subscription Traps, Junk Fees
Common Dreams • • business
Key Points:
- New York City Mayor Zohran Mamdani introduced a "click-to-cancel" rule requiring online subscriptions to be canceled as easily as they are started, aiming to save consumers up to $162.5 million annually.
- The rule follows two executive orders signed by Mamdani targeting hidden junk fees and subscription traps to ensure transparent pricing and protect consumers from deceptive practices.
- The initiative is part of Mamdani's broader affordability agenda, which includes rent freezes, universal childcare, free city buses, municipal grocery stores, and affordable housing expansion.
- City officials emphasized that the rules will prevent companies from profiting through hidden fees and complicated cancellation processes, helping working families save money and time.
- Former FTC Chair Lina Khan praised the rule as a strong measure against predatory subscription tactics, highlighting its potential to set a national standard for consumer protection and economic fairness.
