New York City to become first in US to ban deceptive subscription practices

Key Points:

• New York City will implement a new rule starting October 1 that bans companies from using deceptive subscription practices, requiring easy cancellation methods and imposing fines up to $525 per user subscription for violations.
• The city is also proposing a rule to ban “junk fees” by mandating that sellers advertise the total price upfront, including all mandatory additional charges, which could significantly impact New York’s rental market where hidden fees are common.
• These measures are part of an aggressive consumer protection push led by city officials aiming to combat predatory corporate practices and improve affordability for residents, with potential savings for New Yorkers estimated at $162.5 million annually from the subscription rule alone.
• The proposed junk fee rule will apply to businesses serving both residents and visitors, such as hotels and rental car agencies, and the city plans to collect public comments before finalizing the rule by year-end.
• The city council is also considering banning “surveillance pricing,” which uses personal data to charge different prices to consumers, reflecting a broader effort to regulate unfair pricing practices amid growing leftwing populist support.