New York City becomes first in the US to ban deceptive subscription practices

Rule from Mamdani administration bans companies from trapping customers into paying recurring charges and junk fees'

New York City has adopted a new rule that bans companies from using deceptive subscriptions to trap customers into paying for gym memberships, streaming services and other recurring charges, the city's consumer protection office said.

The new rule, which will start on 1 October, promises hefty fines and aggressive enforcement for violators. Companies that do not provide a simple way to cancel could pay $525 per user subscription, back fees and additional fines.