NYC Is Trying to Stop 'Subscription Traps': What Are Those, and Are Other Places Next?
New York City is tired of hidden fees and impossible cancellations. Here's how to spot subscription traps, use new consumer protections and keep your budget safe from junk fees.
The processing fee that almost doubles your concert ticket or the subscription you have to jump through endless hoops to cancel — these aren't accidents. They're tactics designed to drain your wallet.
Thankfully, the tide is finally turning. New York City Mayor Zohran Mamdani recently announced a proposed major crackdown on these practices. New rules would require companies to provide up-front pricing and a "one-click" cancellation rule. And New York isn't the only place putting in restrictions.
Here is what you should know about these protections — and how to spot the traps still eating away at your budget.
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What are subscription traps?
Signing up for services, from streaming to gym memberships, is super easy. However, when it comes to cancelling those services, you might have to jump through multiple hoops.
Some websites or apps redirect you to multiple pages with confusing language as part of their deliberate retention strategy, or they won't supply a link on their website, instead asking you to call their customer service number, where automated messages and customer service reps trained to help you avoid canceling services await.
This is why I recommend trying out streaming and shopping subscriptions during their free trials. Use a one-time virtual card (some credit card companies offer this feature, including Capital One and Citi). That way, if you have trouble cancelling the service when it's time to pay, you won't have to jump through all the hoops.
The price you didn't agree to: Junk fees
Another policy New York will implement is to eliminate junk and hidden fees. Junk fees are hidden extra charges tacked onto purchases.
Every year, Americans pay billions of dollars in these fees. You'll often find them imposed by ticket brokers, hotels and subscription-based services.
For example, a concert ticket might be listed at $250, but you pay around $400 due to "processing" and other fees. New York aims to combat this by forcing companies to disclose the total costs up front. While that won't eliminate the fees themselves, it alerts you to your total costs upfront, so there are no surprises.
The good news is that New York isn't the only area fighting back against these tactics.
The regulatory wave: Are other places following?
Yes, more than 30 states either have or are in the process of passing legislation to protect customers from hidden fees.
Here are several examples of what states are doing:
- California: Banned junk fees by requiring businesses to display all prices up front.
- Florida: Passed a transparency law forcing restaurants to disclose all fees (including mandatory gratuity) up front.
- Illinois: Starting on January 1, 2027, the state will ban hidden resort fees by hotels, unlisted tips imposed by restaurants and hidden processing fees for sports or concert tickets.
- Colorado: Requires fee transparency from businesses, such as landlords disclosing all mandatory monthly fees, restaurants including mandatory gratuity, and travel providers including resort fees up front.
Beyond the statewide bans, other cities are taking action, too. Seattle is exploring legislation to ban junk fees.
Their measure specifically targets fees in rental agreements, capping how much landlords charge for pet damage and banning charges for tenants who pay rent by check, use mail service or have in-unit appliances.
There are also ways to protect yourself from incurring these hidden costs.
Here's how to protect your cash from hidden charges
To ensure you aren't paying more than you should:
- Always use a credit card: It makes disputing hidden fees much easier.
- Challenge hidden fees: If a company charges a fee they didn't disclose upfront, contact them directly to dispute it.
- Know your local laws: Review your state's or city's laws to see which consumer protections you have, such as price transparency for services.
- Report deceptive practices: If you encounter a company that won't budge on hidden fees, consider filing a report with the Federal Trade Commission.
- Track your subscriptions: Use a budgeting app such as Quicken Simplifi or Tiller to review all your recurring subscriptions.
- Review your credit regularly: Services such as myFico or LifeLock by Norton alert you to credit changes and can help detect fraud early.
Ultimately, keeping yourself protected from these tactics is an ongoing thing. But doing so is well worth the work, as it can save you more of your hard-earned money.
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