🚨NYC Banning Deceptive Subscriptions Starting October 1st
Companies Beware: NYC Cracks Down on Hidden Fees
TL;DR
Starting Oct 1, New York City bans deceptive subscriptions with hefty fines. Companies must provide easy cancellation options or face $525 per user subscription in penalties.
New York City has adopted a new rule banning companies from using deceptive subscriptions to trap customers into paying for recurring charges, starting October 1st. This move targets the practice of hiding cancellation processes and imposing hefty fines on violators, with potential penalties reaching $525 per user subscription plus back fees and additional fines. The city is also proposing a rule requiring sellers to advertise total prices upfront, addressing the issue of 'junk fees' that inflate final costs. If passed, this could save New Yorkers up to $162.5 million annually according to the Roosevelt Institute.
Key Points
New York City's new rule starts October 1st, targeting companies that trap customers into recurring charges with hefty fines up to $525 per user subscription.
Companies must provide a simple way to cancel subscriptions or face additional back fees and penalties on top of the $525 fine per user.
The proposed junk fee rule would require sellers to advertise total prices upfront, addressing hidden costs that inflate final prices for goods and services.
If passed, the renters' rule could save New Yorkers up to $162.5 million annually by making true rental costs transparent on real-estate websites.
Maryland banned 'surveillance pricing' in April, while Colorado's governor vetoed a similar ban last month, showing NYC is leading the charge.
Why It Matters
If you're running an e-commerce platform or subscription service in New York City, your business model could be impacted. Companies must now provide easy cancellation options and transparent pricing to avoid hefty fines starting October 1st. The proposed junk fee rule will also affect how sellers advertise total prices upfront.
Frequently Asked Questions
Why does this matter?
If you're running an e-commerce platform or subscription service in New York City, your business model could be impacted. Companies must now provide easy cancellation options and transparent pricing to avoid hefty fines starting October 1st. The proposed junk fee rule will also affect how sellers advertise total prices upfront.
What happened?
Starting Oct 1, New York City bans deceptive subscriptions with hefty fines. Companies must provide easy cancellation options or face $525 per user subscription in penalties.
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