On July 10, the New York City Department of Consumer and Worker Protections (DCWP) announced a proposed rule that would require all-in, upfront pricing to ban hidden “junk fees” citywide and finalized its “Click-to-Cancel” rule, both implementing the two executive orders that Mayor Mamdani issued on January 5 directing DCWP to combat “junk fees” and deceptive subscription practices (previously covered by InfoBytes here).

The proposed junk fees rule, published July 8, would make it a deceptive and unconscionable trade practice for any person offering, displaying, or advertising a good or service in New York City to do so without clearly and conspicuously posting the total price, defined to include all mandatory fees and charges a consumer cannot reasonably avoid. The rule would require that the total price be displayed at least as prominently as any other pricing information and would require businesses, before a consumer consents to pay, to disclose any additional fees excluded from the total price along with the final amount due. The rule is industry-neutral and would apply to any person advertising to New York City consumers, except to the extent regulation is preempted by federal or state law. DCWP said that it had reviewed several federal banking and financial-services statutes for potential overlap, including TILA, the Truth in Savings Act, the EFTA, and RESPA. The proposal states that DCWP will accept comments through August 7, the date on which it has scheduled a public hearing.

DCWP separately finalized its Click-to-Cancel rule, which takes effect October 1 and requires businesses offering an automatic renewal or continuous service subscription to disclose the material terms of the offer before obtaining a consumer’s consent and to provide a cancellation mechanism that is as easy to use as the mechanism used to sign up. The rule also deems any goods shipped under a continuous service or automatic renewal arrangement without the consumer’s affirmative consent an unconditional gift to the consumer, and it makes violators liable for restitution of amounts charged after a consumer’s first attempt to cancel, in addition to civil penalties. The rule exempts banks, bank holding companies, credit unions, and other financial institutions licensed under state or federal law, as well as entities regulated by NYDFS and businesses operating under a franchise issued by a political subdivision of the state.