New York City Proposes $525 Subscription Penalties as It Moves to Ban Junk Fees
Updated
Updated · The Guardian · Jul 10
New York City Proposes $525 Subscription Penalties as It Moves to Ban Junk Fees
3 articles · Updated · The Guardian · Jul 10
Summary
$525 per user subscription in fines would hit companies that make cancellation difficult under a New York City rule proposed for Oct. 1, targeting gym, streaming and other recurring charges.
The city also wants sellers to advertise total prices upfront, folding all mandatory fees into listed costs; for rentals, that would require annual charges to appear in the stated monthly price.
Samuel Levine said the rules aim to stop companies from competing by hiding true prices, a practice the city says distorts markets and worsens affordability in a city where about 70% of residents rent.
The subscription rule could save New Yorkers up to $162.5 million a year, while the junk-fee measure would also reach hotels and rental car agencies serving visitors if it survives public comment and a hearing.
New York would be the first U.S. city to enact such a junk-fee ban, stepping into a policy fight after a federal click-to-cancel rule was struck down in 2025 and apartment fees were removed from a 2024 Biden rule.
Will NYC’s war on junk fees just lead to higher sticker prices for everyone?
Is New York City's consumer protection plan the new blueprint for cities nationwide?
NYC’s 2026 Crackdown on Hidden Junk Fees: New Rules Target Hotels, Subscriptions, and Event Tickets to Save Consumers $65 Million Annually
Overview
New York City, led by Mayor Zohran Mamdani and the Department of Consumer and Worker Protection, is taking an aggressive stance on price transparency by banning hidden junk fees and deceptive practices. This initiative is driven by widespread consumer frustration, as shown by over 300 complaints in 2025 about hidden hotel fees and unexpected credit card holds. Many hotels advertise low base rates but reveal extra charges later, making it hard for consumers to know the true cost of their stay. The new rules aim to make NYC more affordable and ensure residents and visitors see clear, upfront pricing.