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New York City Mayor Zohran Mamdani signed two executive orders signaling that the City intends to make fighting "junk fees" and "subscription tricks and traps" a priority for his new administration. The City indicated that it intends to immediately begin outreach to businesses – through the City's Department of Consumer and Worker Protection ("DCWP") -- to ensure compliance with New York City law and to warn businesses about the consequences if they fail to comply.
As part of the announcement of the signing of the executive orders, Mayor Mamdani said, "New Yorkers deserve to know exactly what they are paying, how much it will cost, and whether they are signing up for an ongoing charge — before a single dollar leaves their account. Instead, too many people are hit with hidden fees and blindsided by subscription traps they never knowingly agreed to and cannot easily escape."
Junk Fees
In Executive Order 09 ("Combatting Hidden Junk Fees"), the Mayor ordered:
- The establishment of a city-wide junk fee task force to "coordinate and advance the City's work to combat hidden junk fees and promote affordability for New Yorkers, including by coordinating and aligning rulemaking, enforcement, City contracting standards, and public education efforts conducted by the responsible agencies pursuant to their legal authority."
- The DCWP to consider and take appropriate action to combat hidden junk fees, including promulgating rules and proposing legislation.
- The DCWP to "as soon as possible" monitor for compliance, investigate possible violations, and take compliance and enforcement actions to combat hidden junk fees.
Subscriptions
In Executive Order 10 ("Fighting Subscription Tricks and Traps"), the Mayor ordered:
- The DCWP to prioritize monitoring, investigating, and taking enforcement action against subscription practices that deceive or mislead consumers, including by enrolling people in subscriptions, misrepresenting or failing to disclose pricing or renewal terms, and making it difficult to cancel.
- The DCWP to consider other necessary actions to fight subscription tricks and tracks, including rulemakings.
The DCWP is led by the newly-appointed Sam Levine, who most recently served as Director of the FTC's Bureau of Consumer Protection.
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