NYC BECOMES FIRST US CITY TO BAN PREDATORY SUBSCRIPTIONS

Under the new rule, companies can no longer use friction tactics to trap customers in recurring fees. A gym that accepts online sign-ups must allow online cancellations—no mandatory phone calls or in-person visits permitted. NYC residents can now file complaints with city government against businesses violating the requirement. The regulation applies broadly across industries relying on subscription models, from streaming services to membership programs. The move addresses widespread consumer frustration over difficult cancellation processes. Critics have long flagged tactics that make signup frictionless while burying cancellation behind barriers, effectively holding customers hostage to recurring charges. Other jurisdictions, including California and the FTC, have implemented similar protections. NYC's enforcement marks a significant step toward standardizing consumer-friendly subscription practices at the municipal level.