On October 1st, New York City will become the first U.S. city to ban deceptive subscription practices, requiring companies to offer simple cancellation options or face fines of $525 per user subscription, back fees, and additional penalties. The Mamdani administration is also proposing a junk-fee rule requiring sellers, landlords, hotels, and other businesses to "advertise the total price for any good or service, including all mandatory additional charges and fees, up front." The Guardian reports: "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, said Samuel AA Levine, the city's commissioner of consumer and worker protection, in an interview. The new measures are expected to be announced in a press conference on Friday morning.
The proposed fee rule could have an especially wide impact, sending ripples through New York's expensive housing market, where about 70% of residents rent. Apartment renters in the US face a rising tide of add-on fees such as "boiler management" and "lifestyle" charges from management companies, which make true rental costs hundreds of dollars higher than the price stated on real-estate company websites.
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, Levine said. The current situation creates "a scenario where rather than competing on price, companies are competing on their ability to hide the true price. That's the worst kind of incentive" -- and one that deeply distorts the market, Levine said.
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