New York City has adopted a rule banning companies from using deceptive subscription practices to enroll customers in recurring charges, which will take effect on October 1, 2026. The action follows a press conference held on January 21, 2026, by Mayor Zohran Mamdani and Commissioner of Consumer and Worker Protection Samuel AA Levine at the Whitney Museum of American Art.

Companies that do not offer a simple way for consumers to cancel subscriptions could face penalties of $525 per user subscription, along with back fees and additional fines. New York would be the first U.S. city to implement such a ban on deceptive subscription practices. According to an estimate by the Roosevelt Institute thinktank, the rule could save New Yorkers approximately $162.5 million annually.

The city is also proposing a related rule requiring sellers to advertise the total price for any good or service upfront, including all mandatory additional charges and fees. Levine stated, "People shouldn't have to wait on hold for half an hour or send a certified letter or show up to a store in person in order to cancel a subscription." He added, "The current situation creates a scenario where rather than competing on price, companies are competing on their ability to hide the true price."

Levine also addressed the proposed pricing transparency rule, stating, "If the proposed renters rule passes after public comment and hearing, any mandatory fees, including annual ones, would need to be included in the stated monthly rental price." He remarked on the historical context of deregulation: "In the dawn of the [Ronald] Reagan era, the FTC and others in Washington said expressly that … markets could correct themselves, regulate themselves, they were going to stop writing rules, and allow companies to police their own behavior." Levine concluded, "What it has gotten us is 40 years of deceptive pricing."

Regarding enforcement, Levine said, "If you are staying in a hotel in the city that hits you with undisclosed fees upon check-in, you should complain to us." He added, "I certainly hope that we can get this rule done by the end of the year."