New York City Mayor Mamdani advances consumer protection measures

New York City Mayor Zohran Mamdani is advancing new consumer protection measures that have drawn scrutiny regarding their impact on local businesses.

Mamdani has backed the People and Organizations Winning Economic Relief Act (POWER), a City Council bill that would grant private plaintiffs the right to sue businesses for “unfair methods of competition” and deceptive practices. Critics argue the bill’s broad definition of “injury” and its low threshold for coverage—applying to businesses with as few as five employees—could lead to a surge in litigation against small firms. While the administration frames the bill as a tool against predatory corporations, opponents note that many local businesses with fewer than 50 employees would fall under its regulatory scope.

Separately, Mamdani is enforcing a “Click-to-Cancel” rule that took effect on October 1. This regulation requires businesses to make canceling a subscription as simple as the initial enrollment process, prohibiting hurdles such as requiring telephone calls to cancel an online service. The Department of Consumer and Worker Protection (DCWP) is monitoring compliance, and violations can result in civil penalties starting at $525 per instance.