⌂ Home News New York City Consumer Watchdog Targets Junk Fees and Subscription Traps

New York City Consumer Watchdog Targets Junk Fees and Subscription Traps

New York City Consumer Watchdog Targets Junk Fees and Subscription Traps
Samuel AA Levine, New York City Commissioner of Consumer and Worker Protection, in his office
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New York City's new consumer watchdog wants more complaints from residents.

Commissioner Samuel AA Levine, who leads the Department of Consumer and Worker Protection, says the city receives about 30,000 complaints annually and aims to increase that number.

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Levine, who previously served as the Federal Trade Commission's consumer protection director under President Biden, has renewed his fight against junk fees and deceptive subscriptions in New York.

Since January, his office has sued self-storage companies and secured millions from Uber Eats and Amazon.

A proposed "click to cancel" rule could make New York the first municipality in the US to require companies to simplify subscription cancellations.

The rule would apply to any business operating in the city or advertising to residents.

Levine argues that American consumers are unhappy because corporations have too much power.

He points to lax merger enforcement over the past four decades, which has left most industries dominated by just three or four major players.

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Digital interfaces have enabled the shift from owning products to subscribing to them, making recurring billing more appealing to investors.

Companies now use design tricks to manipulate consumer behavior, often making cancellations difficult.

Critics describe Levine's approach as aggressive, but he maintains that corporations breaking the law must face consequences.

He notes a decline in federal white-collar prosecutions, underscoring the need for local enforcement.

Under the proposed rule, companies must make cancellation as easy as signing up.

The department will handle complaints through its 3-1-1 system, with mediators reaching out to companies to secure refunds or cancel subscriptions.

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If a pattern emerges, the office can take legal action in city and state courts.

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Editors Team
Author: Anna Suleta
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