New York City has enacted a rule prohibiting companies from employing deceptive subscription practices that lead customers to incur recurring charges for services such as gym memberships and streaming services. The city’s consumer protection office announced that the rule will take effect on October 1, 2026, and will impose significant fines on companies that fail to provide an easy cancellation process. Violators may face penalties of $525 per user subscription, along with back fees and additional fines.
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New York City implements ban on deceptive subscription practices
New York City has introduced a rule banning deceptive subscription practices that trap customers into recurring charges. The rule, effective October 1, 2026, includes penalties for companies that do not allow easy cancellation of subscriptions.
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New York City becomes first in the US to ban deceptive subscription practices
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New York City implements ban on deceptive subscription practices