Executive orders target hidden charges draining household budgets during affordability crisis
Mayor Zohran Mamdani signed two sweeping executive orders January 5 targeting junk fees and subscription traps that drain household budgets and make basic goods and services less affordable for New Yorkers. The orders direct the Department of Consumer and Worker Protection to investigate hidden and deceptive fees across industries including travel, dining, entertainment, and subscription services. Mamdani emphasized that New Yorkers deserve transparency about what they will actually pay before money leaves their accounts, yet too many companies hide fees until checkout or trap people into recurring charges they cannot easily cancel.
The Hidden Tax on Working Families
Junk fees impose a hidden tax on everyday transactions affecting working-class New Yorkers already struggling with the city’s affordability crisis. A family saving to attend a concert finds hundreds of dollars added at checkout. A household booking a hotel discovers resort fees undisclosed in advertised rates. A consumer subscribing to a streaming service finds charges continuing long after they believed they canceled. Executive Order Nine establishes a Citywide Junk Fee Task Force chaired by Deputy Mayor for Economic Justice Julie Su and Commissioner Sam Levine.
Targeting Corporate Deception
Commissioner Levine, who led the FTC’s Bureau of Consumer Protection, promised aggressive enforcement against companies that pad prices with hidden fees. He called out national corporations doing business in New York for making deceptive pricing a business model. The executive order directs DCWP to monitor compliance with existing city law and pursue enforcement actions against violators. It authorizes the agency to develop new rules addressing hidden junk fees.
The Subscription Trap Problem
Executive Order Ten addresses subscription tricks and traps, directing DCWP to crack down on deceptive enrollment and cancellation practices. Too many New Yorkers are tricked into subscriptions that quietly drain their money. A gym charges initiation fees buried in contracts. An app auto-renews without clear consent. A service makes cancellation intentionally difficult, requiring multiple steps to opt out. The executive order directs DCWP to use its full rulemaking authority to ban businesses from deceptively enrolling people into subscriptions.
Federal Rules and City Innovation
Federal regulations already address certain junk fees and subscription practices. Last year, the FTC adopted final rules classifying certain live event ticketing and short-term lodging fees as unfair and deceptive. The FTC also proposed a click-to-cancel rule requiring businesses to make cancellation as easy as enrollment. However, the click-to-cancel rule faced legal challenges and has not been fully implemented. New York City’s new executive orders allow the city to move beyond federal minimums.
Building Political Momentum
Mamdani’s junk fee and subscription crackdown aligns with his campaign promise to make New York more affordable. The orders reflect his administration’s broader economic populism, evident in appointing former FTC leadership to key positions. Alongside Levine at DCWP, Mamdani retained Lina Khan, former FTC chair, in an unpaid advisory role. Attorney General Letitia James joined Mamdani at the signing, emphasizing her office’s commitment to partnering on consumer protection. City Council Speaker Julie Menin pledged cooperation in passing any necessary legislation.
Implementation and Enforcement
DCWP will begin outreach to businesses ensuring compliance with city law and signaling immediate consequences for violations. The task force will investigate complaints and patterns of abuse. Mamdani has promised to double DCWP’s roughly 65 million dollar budget, expanding the agency’s capacity. The City Council must approve budget changes, but with Menin as speaker, there appears to be political alignment on consumer protection.
What Comes Next
Consumers can expect the Mamdani administration to take aim at practices that have become normalized in the corporate economy but that impose real costs on household budgets. The junk fee and subscription orders represent Mamdani’s first major policy actions after taking office, demonstrating his commitment to translating campaign promises into immediate executive action. The Federal Trade Commission’s work on consumer protection provides template for the city’s enforcement efforts and financial protection standards while Mamdani’s consumer office leads locally.
