ADventures in Law

Home | ADventures in Law

New York City is stepping up consumer and worker protection enforcement. In early 2026, Samuel Levine, formerly Director of the Federal Trade Commission (FTC or Commission)’s Bureau of Consumer Protection, took over as Commissioner of the Department of Consumer and Worker Protection (DCWP). He immediately <a href="https://www.nyc.gov/assets/dca/downloads/pdf/media/Advocacy-Remarks-Executive-Orders-9-10.pdf" target="_blank" rel="noreferrer noopener">declared</a> that New York City is “shutting the door on the era of hidden junk fees and illegal subscription traps” and that DCWP would be “crack[ing] down” so companies should not “wait for a subpoena.” The same day, Mayor Zohran Mamdani <a href="https://www.nyc.gov/mayors-office/news/2026/01/mayor-mamdani-signs-executive-orders-to-crack-down-on-junk-fees-" target="_blank" rel="noreferrer noopener">issued executive orders</a> launching a crackdown on hidden “junk” fees and subscription tricks/traps. Those orders were quickly followed by a strict <a href="https://www.nyc.gov/assets/dca/downloads/pdf/about/DCWP-NOH-Rules-Relating-to-Limitations-on-Hotel-Fees.pdf" target="_blank" rel="noreferrer noopener">rule</a> banning undisclosed hotel fees, enforcement actions targeting delivery apps, even <a href="https://www.nyc.gov/site/dca/news/042-26/mamdani-administration-moves-protect-nyc-workers-files-motion-shutter-third-party-delivery" target="_blank" rel="noreferrer noopener">seeking to shutter one</a> and <a href="https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=jj4vPm8ECd5ChQ4Xoo86UA==" target="_blank" rel="noreferrer noopener">hold its CEO personally liable</a>, and <a href="https://www.nyc.gov/mayors-office/news/2026/07/mamdani-administrationrecovers--2-3-millionfor-workers-in-major-" target="_blank" rel="noreferrer noopener">recent settlements</a> focused on alleged labor law violations concerning shift scheduling. DCWP has also proposed a landmark <a href="https://rules.cityofnewyork.us/wp-content/uploads/2026/04/DCWP-NOH-Proposed-Rules-Relating-to-Cancellation-of-Subscriptions.pdf" target="_blank" rel="noreferrer noopener">“Click to Cancel” rule</a> aimed at making it as easy to cancel subscriptions as it is to sign up. These moves underscore DCWP’s efforts to protect NYC consumers and workers and could impact a wide range of businesses, including those based outside of NYC.

core/paragraph

core/heading

Junk fees and pricing transparency: On January 5, 2026, just a few days after his inauguration, Mamdani signed <a href="https://www.nyc.gov/mayors-office/news/2026/01/executive-order-09" target="_blank" rel="noreferrer noopener">Executive Order 9</a>, which established a citywide “junk fee” task force spearheaded by Levine and the Deputy Mayor for Economic Justice. It directed them to use all available resources to combat hidden “junk” fees. Later that same month, DCWP issued a new <a href="https://www.nyc.gov/assets/dca/downloads/pdf/about/DCWP-NOH-Rules-Relating-to-Limitations-on-Hotel-Fees.pdf" target="_blank" rel="noreferrer noopener">rule</a> banning undisclosed hotel fees and surprise credit card holds that is similar to the <a href="https://www.federalregister.gov/documents/2025/01/10/2024-30293/trade-regulation-rule-on-unfair-or-deceptive-fees" target="_blank" rel="noreferrer noopener">FTC’s Rule on Unfair or Deceptive Fees</a> (commonly referred to as all-in pricing) and even requires stringent disclosures concerning credit card holds. Under this new rule, covered NYC businesses and businesses that advertise to New Yorkers must provide robust pricing and credit card hold disclosures.

Subscription tricks and traps: On January 5, 2026, Mamdani also signed <a href="https://www.nyc.gov/mayors-office/news/2026/01/executive-order-10" target="_blank" rel="noreferrer noopener">Executive Order 10</a>, which targets hard-to-cancel memberships and free trials that unexpectedly convert to paid subscriptions. The DCWP has issued a letter to 187 gyms and health clubs warning that their <a href="https://www.nyc.gov/assets/dca/downloads/pdf/media/dcwp-gym-compliance-letter.pdf" target="_blank" rel="noreferrer noopener">cancellation policies must comply with applicable laws</a>. Now the agency is moving to formal regulation. During Levine’s tenure at the FTC, the Commission promulgated a click-to-cancel rule.<a id="_ftnref1" href="#_ftn1">[1]</a> Under his leadership, the DCWP has proposed the nation’s first municipal <a href="https://rules.cityofnewyork.us/wp-content/uploads/2026/04/DCWP-NOH-Proposed-Rules-Relating-to-Cancellation-of-Subscriptions.pdf" target="_blank" rel="noreferrer noopener">“Click to Cancel” rule</a>, which requires that businesses make canceling a subscription as easy as subscribing and allow customers to cancel everywhere they can sign up. If finalized, this rule sets the stage for increased enforcement against businesses that make it difficult for consumers to cancel subscriptions.&nbsp;

Worker protection: Under Levine, DCWP has also actively enforced NYC’s labor standards, including in the gig and retail industries. In January, DCWP and the City Law Department <a href="https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=jj4vPm8ECd5ChQ4Xoo86UA==" target="_blank" rel="noreferrer noopener">filed</a> a sweeping lawsuit against Motoclick, a food delivery platform, and recently filed a motion for a preliminary injunction seeking to stop Motoclick from operating in NYC because of alleged <a href="https://www.nyc.gov/site/dca/news/042-26/mamdani-administration-moves-protect-nyc-workers-files-motion-shutter-third-party-delivery" target="_blank" rel="noreferrer noopener">“egregious”</a> violations of the Delivery Worker Laws, including paying workers below the minimum wage and deducting unlawful fees. Just weeks after filing that lawsuit, the city and DCWP announced a <a href="https://www.nyc.gov/mayors-office/news/2026/01/mayor-mamdani-announces--5-million-settlement--reinstatement-of-" target="_blank" rel="noreferrer noopener">$5 million settlement</a> against other food delivery platforms that required reinstatement of thousands of delivery workers.&nbsp; They also recently <a href="https://www.nyc.gov/mayors-office/news/2026/07/mamdani-administrationrecovers--2-3-millionfor-workers-in-major-" target="_blank" rel="noreferrer noopener">announced another multimillion-dollar settlement</a> against businesses that allegedly violated labor laws, including those concerning schedule changes and protected time off.

Review fees and pricing disclosures: Businesses, especially in the hotel industry, should eliminate separate surcharges, “resort fees,” service fees or add-ons and provide robust credit card hold disclosures. While NYC’s crackdown has focused on hotels, it could expand to live ticket sales (which are covered by the FTC’s all-in-pricing rule) and other industries.

core/list-item

Tighten auto-renewal and cancellation practices: Businesses should review their subscription, cancellation and automatic renewal processes to ensure that their marketing, free trials, enrollment flows and cancellation options comply with NYC’s new approach. Companies with subscriptions that auto-renew should preemptively streamline their cancellation processes and review all consumer disclosures to avoid being investigated by the city.

Bolster NYC labor law compliance: Businesses, especially those that work with gig and retail workers, should make sure that their practices comply with applicable laws, including laws concerning minimum pay, tipping and schedule changes.

core/list

core/separator

<a id="_ftn1" href="#_ftnref1">[1]</a> Although the Eighth Circuit <a href="https://ecf.ca8.uscourts.gov/opndir/25/07/243137P.pdf" target="_blank" rel="noreferrer noopener">vacated</a> this rule on procedural grounds, in March 2026, the FTC <a href="https://www.ftc.gov/news-events/news/press-releases/2026/03/ftc-seeks-public-comment-response-advance-notice-proposed-rulemaking-regarding-negative-option" target="_blank" rel="noreferrer noopener">restarted the rulemaking process</a>, which paves the way for a similar rule.

NYC Department of Consumer and Worker Protection Ramps Up Enforcement Under New Leadership