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New York City Proposes Click-to-Cancel Rule and Tightens Junk-Fee Enforcement

City officials say the package seeks to force clearer prices, make subscription cancellations as easy as signups, increase worker-protection enforcement, and expand compliance obligations for firms that transact with New Yorkers.

Overview

  • The Department of Consumer and Worker Protection has proposed a municipal click-to-cancel rule that would require businesses to let customers cancel subscriptions by the same method they used to sign up and bar tactics that obscure or block cancellations.
  • The adopted and proposed pricing rules already ban undisclosed hotel fees and require businesses that advertise to New Yorkers to give clear all-in pricing and credit-card hold disclosures.
  • The city has moved from announcements to enforcement, pursuing litigation to stop at least one delivery platform from operating and securing multimillion-dollar settlements with other platforms over alleged wage and fee violations.
  • Officials say civil penalties will be available for violations and that the agency will first try to mediate complaints, recover money for consumers and seek court action for repeat or widespread noncompliance.
  • The rules extend beyond local storefronts because they apply to firms that advertise to New Yorkers, a move the city links to broader federal rulemaking and projects large consumer savings if compliance is achieved.