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NYC Bans Subscription Traps, Junk Fees

Hacker News •
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New York City is enacting stringent new regulations targeting deceptive subscription practices and "junk fees." Effective October 1, companies must offer simple cancellation methods for recurring services like gym memberships and streaming. Violators face penalties of $525 per user subscription, plus back fees and additional fines. This marks the first US city to implement such a ban.

Separately, the city proposes requiring businesses to advertise the total price of goods and services upfront, including all mandatory charges. This could significantly impact the rental market, where add-on fees often inflate advertised prices. Commissioner Samuel AA Levine stated that companies currently compete by hiding true costs, distorting the market.

These measures aim to curb predatory pricing and protect consumers. The subscription rule alone could save New Yorkers an estimated $162.5 million annually. While the subscription ban applies locally, the junk fee rule could affect businesses serving tourists. The city is also considering a ban on "surveillance pricing."