New York City adopts rule targeting deceptive subscription practices
The measure bans companies from using misleading tactics that lock consumers into recurring charges for gym memberships, streaming services and similar services, the Guardian reported.
Summary
New York City has adopted a new rule aimed at curbing deceptive subscription practices that can trap customers into ongoing payments. The measure bars companies from using misleading tactics to keep people paying for gym memberships, streaming services and other recurring charges, in a consumer-protection push reported by the Guardian. The move matters because subscription businesses often rely on automatic renewals, and regulators have increasingly focused on whether cancellation and consent processes are clear and fair.
Terms & Concepts
- recurring charges: Repeated automatic payments on a schedule
- automatic renewals: Subscriptions that continue unless canceled