New York City Mayor Zohran Mamdani on Friday announced a sweeping new consumer protection initiative aimed at eliminating subscription traps and hidden fees, introducing what he called the nation’s first municipal “Click to Cancel” rule.

The new regulation will require businesses to make canceling a subscription just as simple as signing up for one. Under the policy, companies will no longer be permitted to bury consumers in lengthy cancellation processes after allowing them to enroll with only a single click.

Mamdani unveiled the proposal alongside New York City Department of Consumer and Worker Protection Commissioner Samuel A.A. Levine and other city officials.

“I think many of us have come to feel this is inevitable,” Levine said. “The feeling like we’re navigating a minefield when we’re shopping is simply the price of modern convenience.”

The regulations are scheduled to take effect in October and are intended to protect consumers from recurring subscription charges—such as those associated with gyms and hotels—as well as so-called junk fees that are not disclosed until the final stages of a purchase.

City officials estimate that the Click-to-Cancel rule alone could save New Yorkers as much as $162.5 million annually.

“For years, companies have built their business model around making it harder for working people to hold onto their money,” Mayor Mamdani said. “Whether it’s hidden fees that suddenly appear at checkout or subscriptions that take one click to sign up for and a dozen steps to cancel, the result is the same: working people pay more while corporations profit. That ends now. If you can sign up with one click, you can cancel with one click.”

Many city residents welcomed the proposal, saying subscription services have become an expensive burden that is often difficult to escape.

“Like we have so many subscriptions that we barely even use or like family plans,” said Financial District resident Paige Southworth.

“I would say Netflix, or honestly all of the above. They definitely never give you a chance, I guess, to catch a break,” said Lower East Side resident Ike Sanchez.

The city initiative mirrors a similar nationwide rule introduced by Lina Khan while serving as chair of the Federal Trade Commission during the Biden administration. That federal regulation was later blocked by the courts during the Trump administration.

Khan now serves as an adviser to Mamdani and has played a leading role in bringing a comparable policy to New York City.

“The Mamdani administration’s work to tackle the affordability crisis and promote economic fairness continues to set a new standard nationwide, modeling effective governance and a relentless focus on using all of the city’s levers to improve life for New Yorkers,” she said.

Businesses found violating the rule could face consumer restitution orders as well as civil penalties beginning at $525 for each violation.

Questions remain, however, about how aggressively the city will enforce the new regulations and what the overall cost of implementing and policing the program will be.

{Matzav.com}