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Brian Boyle, Dan Caprio, Andrew Sacks and Brett Feldman

United States
  

Mayor Mamdani signals aggressive consumer protection enforcement  

 

DLA Piper | New York City inaugurated its new mayor, Zohran Mamdani, on January 1, 2026. As part of his new administration, Mayor Mamdani appointed former head of the Federal Trade Commission (FTC)’s Bureau of Consumer Protection, Samuel Levine, to serve as the Commissioner of New York City’s Department of Consumer and Worker Protection (DCWP), a move which followed on Mayor Mamdani’s prior appointment of former FTC Chair Lina Khan to lead his mayoral transition.

Commissioner Levine’s appointment and the new Mayor’s close alignment with former Chair Khan – both of whom are veteran antitrust and consumer protection enforcers with well-documented histories of aggressively interpreting consumer protection laws – underscore the degree to which Mayor Mamdani has made "personnel the policy" and, by these appointments, has signaled the new administration’s intentions to test the outer bounds of New York City’s investigatory and enforcement authorities.

As DCWP’s authority reaches any company that markets to or engages consumers in the city – even without a storefront – Mayor Mamdani’s appointments and policy priorities may impact consumer-facing businesses well beyond the five boroughs of New York City. Therefore, national brands and e commerce platforms may be subject to investigations and enforcement actions even if they have no physical presence in the city.

Personnel as policy: Khan and Levine signal an enforcement‑first posture

Mayor Mamdani’s close working relationship with former Chair Khan and Commissioner Levine portends an early playbook of executive and regulatory actions that prioritize enforcement against consumer-facing businesses in New York City. Indeed, on January 5, 2026 – only days into his administration – Mayor Mamdani signed executive orders directing the DCWP to prioritize investigations of, and initiate enforcement actions against, "junk fee pricing" and "subscription tricks and traps." At the press conference announcing these new directives, Commissioner Levine warned businesses: "Do not wait for a subpoena."

The focus on immediate levers reflects former Chair Khan’s hallmark, i.e., using existing authorities – without regard to whether those authorities have long been dormant or fallen out of favor – to aggressively challenge business practices. Commissioner Levine’s appointment to lead New York City’s DCWP operationalizes that strategy. Former Chair Khan’s track record of taking on junk fees, dark‑pattern subscriptions, data abuses, and telemarketing likely foreshadows a strong stance toward what the Mamdani Administration identifies as deceptive and unconscionable practices harming consumers in New York City.

Commissioner Levine has been explicit that DCWP will advocate for consumers, workers, and small businesses – another signal that enforcement will be front‑footed.

New York City Consumer Protection Law: Scope, teeth, and why its revival matters

DCWP wields broad powers under the New York City Consumer Protection Law to police deceptive and unconscionable trade practices across goods, services, credit, and debt collection – including digital statements and online offers. The statute authorizes civil penalties, injunctive relief, restitution, and public settlements, and – critically – it does not require proof of actual consumer injury to establish a violation. DCWP can proceed administratively or in court, supported by subpoena power, with penalties accruing per deceptive statement and, where shown, per exposure or consumer reached.

A revived focus on this law would have direct implications for consumer‑facing businesses, including:

  • Brick‑and‑mortar in New York City: Storefront businesses may see renewed inspections and enforcement of truth‑in‑pricing requirements, such as conspicuous total price displays, item pricing or scanner accuracy, and price‑per‑measure disclosures. Noncompliance can be charged as deceptive practices and carry escalating civil penalties.
  • Businesses serving New York City consumers (without a storefront): The definition of deceptive practices expressly reaches digital and electronic statements. DCWP can pursue deceptive advertising, pricing claims, and subscription practices disseminated into the city, with penalties potentially calculated per exposure or per consumer.

Because DCWP’s rules track federal consumer-protection laws, including Section 5 of the FTC Act, the city may take enforcement positions that mirror those taken by the FTC under federal law during former Chair Khan’s tenure, particularly on issues like junk fees, dark patterns, and data‑related deception, but apply them through faster and more opaque local processes.

What to expect for consumer‑facing businesses

The appointment of Levine as Commissioner of New York City’s DCWP, and former Chair Khan’s deep involvement in Mayor Mamdani’s transition, each signal a high intensity enforcement agenda. Consumer-facing businesses – with both physical and digital presences in New York City – should expect that the new Mamdani Administration will undertake aggressive consumer protection investigation and enforcement and should prepare themselves for greater scrutiny.

Authors: Brian Boyle, Dan Caprio, Andrew Sacks and Brett Feldman

dlapiper.com

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