Former FTC chairman Lina Khan has sent a thanks note to Mayor Zohran Mamdani for 'Click-to-Cancel' rule he announced recently. New York will become the first city in the US to require that consumers be allowed to cancel subscriptions for streaming services, gym memberships and more in the way that they signed up. FTC's ex-chairman Lina Khan commended Mamdani for the same. "Thanks to Mayor Mamdani’s administration, businesses must now make it as easy to cancel a subscription as it is to sign up for one. New Yorkers can report subscription tricks and traps by calling 311 or filing a complaint at http://nyc.gov/consumer," she wrote.Lina Khan was made the head of FTC in 2021 by the former US President Joe Biden. During her four-year tenure she had many fights with technology companies including Amazon, Google, Meta and Nvidia. In Silicon Valley, many industry leaders are of the view that she went too far. There were reported to be significant courtroom victories under her, including the block on Kroger’s $25 billion merger with Albertsons. The chip giant Nvidia reportedly abandoned its $40 billion bid for Arm, after the FTC sued to block the deal. There were also losses, such as FTC's failed bid to block Microsoft’s $69 billion (£57bn) deal to buy Activision Blizzard, publisher of mega gaming franchises including Call of Duty, World of Warcraft and Candy Crush.Incidentally, in March 2023, FTC announced a proposed “click to cancel” provision requiring sellers to make it as easy for consumers to cancel their enrollment as it was to sign up. That is just one of several significant updates the Commission is proposing to its rules regarding subscriptions and recurring payments. The new click to cancel provision, along with other proposals, would go a long way to rescuing consumers from seemingly never-ending struggles to cancel unwanted subscription payment plans for everything from cosmetics to newspapers to gym memberships.“Some businesses too often trick consumers into paying for subscriptions they no longer want or didn’t sign up for in the first place,” said FTC's then-Chair Lina Khan. She added, “The proposed rule would require that companies make it as easy to cancel a subscription as it is to sign up for one. The proposal would save consumers time and money, and businesses that continued to use subscription tricks and traps would be subject to stiff penalties.”The notice of proposed rulemaking announced was part of the FTC’s ongoing review of its 1973 Negative Option Rule, which the agency uses to combat unfair or deceptive practices related to subscriptions, memberships, and other recurring-payment programs.What is Zohran Mamdani's 'Click-to-Cancel' ruleNew York City Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine announced new consumer protections that will crack down on junk fees and subscription traps, making it easier for New Yorkers to know the real price of what they are buying and to stop paying for the services they no longer want.Following Mayor Mamdani’s Executive Orders 9 and 10, the City announced a proposed rule requiring transparent, all-in pricing that bans hidden junk fees, alongside a final “Click to Cancel” rule that guarantees consumers can cancel subscriptions as easily as they sign up for them.Together, these rules represent one of the strongest municipal consumer protection efforts in the country and build upon Mayor Mamdani’s affordability agenda, including the City’s rule banning hidden hotel fees. The Click-to-Cancel Rule alone is estimated to save New Yorkers up to $162.5 million per year.“For years, companies have built their business model around making it harder for working people to hold onto their money,” said Mayor Mamdani. “Whether it’s hidden fees that suddenly appear at checkout or subscriptions that take one click to sign up for and a dozen steps to cancel, the result is the same: working people pay more while corporations profit. That ends now. If you can sign up with one click, you can cancel with one click.” “Every dollar a family loses to a hidden fee or a subscription they couldn’t cancel is a dollar stolen from them, a dollar that could have gone toward rent, groceries, childcare, or anything else. And just as important, the hours spent trying to cancel a subscription or membership you no longer want is stolen time,” said Deputy Mayor for Economic Justice Julie Su. “That’s what affordability means in practice—closing the small holes that drain people’s paychecks and their time month after month. These rules put New Yorkers back in control.” “The Mamdani Administration is shutting the door on the era of fleecing New Yorkers with junk fees and subscription traps,” said Commissioner Samuel A.A. Levine. “These two rules will ensure that the price you see is the price you pay—no hidden charges, no endless subscription services and no advantages for businesses that cheat. Requiring companies to compete on price will lower costs for all New Yorkers and level the playing field for honest businesses.”“Nobody should be trapped in subscriptions they can’t escape or stuck paying junk fees they can’t avoid,” said Lina Khan, former FTC Chair. “These predatory tactics cheat people out of billions of dollars each year. With today’s rules, Commissioner Levine and DCWP are cracking down on corporate ripoffs, protecting families and honest businesses alike. The Mamdani administration’s work to tackle the affordability crisis and promote economic fairness continues to set a new standard nationwide, modeling effective governance and a relentless focus on using all of the city’s levers to improve life for New Yorkers.” “New Yorkers across the five boroughs are feeling the squeeze of the affordability crisis as they pay more and more for less and less. Junk fees and subscription traps add to this, costing families an average of $3,200 per year. Big companies can’t play by their own rules, charging customers for things they don’t want or need. I applaud Mayor Zohran Mamdani, Deputy Mayor Julie Su and Commissioner Sam Levine for taking action to stop these exploitative business practices and lower costs for everyday New Yorkers,” said State Senator Kristen Gonzalez.