Mamdani announces 'Click to Cancel' rule to rid NYC of subscription traps and junk fees
ABC7 New York • • business
Key Points:
- New York City Mayor Zohran Mamdani announced the "Click to Cancel" rule, requiring businesses to make subscription cancellations as easy as sign-ups, aiming to protect residents from subscription traps and hidden junk fees.
- The rule, effective October, targets endless subscription renewals at gyms, hotels, and other services, with an estimated annual savings of up to $162.5 million for New Yorkers.
- The initiative responds to widespread consumer frustration over difficult cancellation processes and is modeled after a similar federal rule proposed during the Biden administration but blocked by courts during the Trump administration.
- Lina Khan, former FTC chair and current advisor to Mayor Mamdani, is leading the city's efforts to implement this consumer protection measure.
- Businesses violating the rule face restitution payments and civil penalties starting at $525 per violation, though enforcement details and costs remain to be clarified.
