Zohran Mamdani is trying to solve one big consumer problem in New York
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Zohran Mamdani is trying to solve one big consumer problem in New York
"Mamdani signed orders targeting business practices that "drain money from New Yorkers and make essential goods and services less affordable," per a release from his office on Monday. In a speech announcing the orders against junk fees on Monday, Mamdani said, "We reckon with it when we try to buy concert tickets, when we book a flight, when we settle our credit card bill, or even when we pay rent. A $5 fee here, a $10 fee there - what seems small adds up quickly.""
"His first order targeted fees that "do not meaningfully contribute to the service" and are hidden until after the purchase has been made, the release said. The second order took aim at what Mamdani called "subscription traps and tricks," including free trials that automatically convert into paid plans, and subscriptions disguised as one-time purchases. The order also talked about subscriptions that make cancellations "intentionally difficult.""
"During his speech, Mamdani was accompanied by Sam Levine, his newly appointed commissioner of New York City's Department of Consumer and Worker Protection. Levine previously served as a director of the Federal Trade Commission's Bureau of Consumer Protection. To combat junk fees, Mamdani announced that he would establish a citywide junk fee task force to crack down on offending businesses. In 2023, the Biden administration also took aim at junk fees."
Zohran Mamdani began his mayoralty by signing two executive orders targeting hidden junk fees and deceptive subscription practices. One order bans fees that do not meaningfully contribute to a service and that are hidden until after purchase. The second order addresses subscription traps and tricks, including free trials that automatically convert to paid plans, subscriptions disguised as one-time purchases, and cancellation processes made intentionally difficult. Mamdani named Sam Levine, a former FTC Bureau of Consumer Protection director, as the city's consumer protection commissioner and announced a citywide junk-fee task force to enforce the orders. Past federal actions against junk fees are noted.
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