Mayor Mamdani Signs Executive Orders to Crack Down on Junk Fees, Save New Yorkers Money

Amid an affordability crisis, junk fees and subscription tricks and traps are making goods and services less affordable for New Yorkers

DCWP will soon begin outreach to businesses to ensure compliance with city law and signal immediate consequences

Alongside, Attorney General Tish James, Council Member Julie Menin, and DCWP Commissioner Sam Levine, Mayor Mamdani signed two executive orders to protect New Yorkers against misleading fees and deceptive subscription traps

NEW YORK, NY — TODAY, Mayor Zohran Mamdani, joined by Attorney General Letitia James, City Council Member Julie Menin, and DCWP Commissioner Sam Levine, signed two executive orders: to combat businesses’ deceptive use of junk fees and crackdown on subscription tricks and traps that that drain money from New Yorkers and make essential goods and services less affordable.

Following the signing, DCWP will begin outreach to businesses to ensure compliance with city law and signal immediate consequences.

EXECUTIVE ORDER NO. 9 — COMBATTING HIDDEN JUNK FEES:

Amid a growing affordability crisis, many companies continue to mislead New Yorkers into paying junk fees — fees that do not meaningfully contribute to the service and are often hidden until after a purchase decision has been made. Junk fees have infiltrated nearly every part of our economy from gym memberships and concert tickets to airline bookings and healthcare services.

By signing this executive order to take on junk fees, this administration is signaling it will aggressively crack down on companies who mislead New Yorkers into paying more for services, saving New Yorkers money amidst our cost-of-living crisis. The first executive order signed by Mayor Mamdani to combat junk fees will:

• Establish a Citywide Junk Fee Task Force: The task force will be chaired by Deputy Mayor of Economic Justice Julie Su and DCWP Commissioner Sam Levine and will work to advance the city’s work in combatting junk fees and making New York City more affordable.

• Combat Hidden Junk Fees: Direct the DCWP to consider and take any actions it deems appropriate to crack down on deceptive or hidden fees that unfairly burden New Yorkers.

• Enforce Compliance with City Law: Directs the DCWP to monitor compliance, investigate potential violations, and take enforcement actions as authorized under applicable laws and rules, including any new rules designed to address hidden junk fees.

EXECUTIVE ORDER NO. 10 — FIGHTING SUBSCRIPTION TRICKS AND TRAPS

Too many New Yorkers are being tricked into subscriptions that quietly drain their money — today, Mayor Mamdani also signed an executive order to fight subscription tricks and traps. This executive order:

• Empowers the city to use the full tools and authorities of the office to crack down on illegal subscription practices

• Directs the DCWP to monitor, investigate, and enforce violations related to subscription tricks and traps

• Urges DCWP to make recommendations to the City Council to fight subscription tricks and traps

• Calls for coordination with agencies, including the Law Department, and other offices, like the New York State Attorney General to ensure maximum impact in combating subscription traps

Businesses use a range of deceptive practices to trap customers in unwanted subscriptions, including so-called “free trials” that automatically convert into paid plans with critical disclosures buried in fine print or behind hyper links; adding monthly fees or add-on charges after payment information has already been collected; disguising subscriptions as one-time purchases; bundling subscriptions with other services so consumers do not realize they are paying for an additional product; and making cancellation intentionally difficult — forcing consumers to call during limited hours, remember or reset login credentials, or navigate multiple screens before they can cancel.

Junk fees not only hurt consumers, but they also disadvantage honest businesses that are upfront with pricing. The Mamdani administration will hold companies accountable, leveling the playing field while protecting New Yorkers from deceptive practices.

Mayor Mamdani takes the protection of New York consumers and tenants seriously. Just yesterday, Mayor Mamdani signed an executive order to hold “Rental Ripoff” hearings in every borough. These hearings provide an opportunity for working New Yorkers to speak about the challenges they face – from poor building conditions to hidden fees on rent payments. Following these hearings, the Mamdani administration will publish a summary and report detailing common themes and areas of opportunity, and the testimony shared at these hearings will directly inform policy interventions to take on these ripoff tactics. Details about the hearings will be available at nyc.gov/RentalRipoff.

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