Executive Orders Ban Hidden Charges, Subscription Traps That Drain Household Budgets
The Mamdani administration has launched an aggressive crackdown on junk fees and deceptive subscription practices that drain millions from household budgets, signing two executive orders alongside state Attorney General Letitia James and the Department of Consumer and Worker Protection. The orders establish a Citywide Junk Fee Task Force chaired by Deputy Mayor of Economic Justice Julie Su and DCWP Commissioner Sam Levine, targeting businesses that use hidden fees and subscription tricks to increase costs for consumers.
The Hidden Fee Problem
Junk fees have infiltrated nearly every sector of the consumer economy, from airline bookings and concert tickets to gym memberships and healthcare services. Many companies employ design tricks to obscure fees until after purchase decisions are made, forcing consumers into unexpected additional charges. According to city officials, these practices disproportionately harm working-class and middle-income households already struggling with affordability crises.
Executive Order No. 9: Combatting Junk Fees
The first executive order directs the DCWP to identify and crack down on deceptive or hidden fees that unfairly burden New Yorkers. The order establishes a citywide task force to monitor compliance, investigate violations, and enforce penalties against businesses violating consumer protection laws. DCWP Commissioner Sam Levine stated that New Yorkers deserve to know exactly what they are paying before a single dollar leaves their account.
Executive Order No. 10: Fighting Subscription Tricks
The second order targets subscription schemes that trap consumers into ongoing charges they did not knowingly authorize or cannot easily cancel. The order directs DCWP to identify and prosecute businesses that use hidden button designs, misleading language, or complicated cancellation procedures to prevent subscription cancellation.
Hotel Consumer Protection Wins
The administration has already implemented the strongest hotel consumer protections in the United States, banning hidden fees and cracking down on surprise credit card holds and deposits. All-in pricing requirements, which mandate hotels disclose total costs before purchase, took effect one month following the order. This requirement is the first of its kind in the nation.
Implementation Strategy
Following the order signing, DCWP will conduct outreach to businesses to ensure compliance and signal immediate consequences for violations. The agency will monitor compliance through data collection and investigation of consumer complaints.
Support From Labor and Business
The executive orders have drawn support from labor organizations representing hotel workers and consumer advocates. Labor leaders noted that junk fees and deceptive practices put workers in impossible positions, forcing them to absorb customer frustration over policies they have no control over.
Affordability Crisis Context
The junk fee crackdown sits within the broader Mamdani administration affordability agenda. In his campaign platform, the mayor emphasized that New York is experiencing an affordability crisis that is pushing working families out of the city. Hidden fees and subscription traps exacerbate this crisis by increasing costs for essential services beyond what families can predict or budget.
Broader Consumer Protections
The junk fee and subscription orders represent the beginning of the administration’s consumer protection agenda. City officials have indicated plans to advance additional protections in coming months, including increased enforcement against price gouging, transparent pricing in healthcare, and protection for renters from hidden lease fees.
DCWP’s Expanded Authority
Commissioner Levine has received expanded authority and resources to investigate and prosecute consumer violations. The department has already begun enforcement actions against delivery applications accused of using design tricks to deprive workers of tips.
Federal Advocacy
The city is simultaneously advocating to federal agencies for stronger national consumer protection standards. Mayor Mamdani has stated that consumer protection should be a federal priority, not just a local initiative. Find more information about consumer protection laws, the Department of Consumer Protection, and consumer credit protection.
