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New York City Adopts Click-to-Cancel Rule and Proposes All-In Pricing to Curb Junk Fees

The measures combine a binding cancellation requirement with fines and active enforcement to make prices clearer and subscriptions easier to end.

Overview

  • The Department of Consumer and Worker Protection adopted a final Click-to-Cancel rule, which it announced on Friday, July 10, and the rule takes effect October 1, 2026.
  • The rule requires customers to be able to cancel by the same method they used to enroll, bans misleading cancellation tactics, includes exemptions for some financial and state-regulated entities, and sets civil penalties that start at $525 per violation and rise for repeat offenses.
  • DCWP published a proposed all-in pricing, or junk-fees, rule this month that would force businesses to include mandatory charges in advertised prices, ban misrepresentations about fees, and require documentation of what fees cover.
  • The city has paired rulemaking with active enforcement, pursuing litigation against Motoclick and announcing a separate $5 million settlement with other delivery platforms to address alleged labor and fee violations.
  • City officials say the Click-to-Cancel rule could save New Yorkers millions annually and DCWP will accept public comments and hold a hearing on the junk-fees proposal on August 7 as it phases in enforcement.