Following New York City Mayor Zohran Mamdani’s Executive Orders cracking down on so-called “junk fees” and “subscription traps,” city officials have begun taking action against companies and industries they say abuse consumers by imposing such fees, create such traps or otherwise violate the consumer protection laws under DWCP’s jurisdiction. While most of these actions did not involve consumer financial services as such, we felt it important for our readers to be aware of how aggressive and active this agency has become. 

Specifically, Executive Order 9, issued on January 5, 2026, established a city-wide “junk fee” task force chaired by Deputy Mayor Julie Su and Department of Consumer and Worker Protection (DCWP) Commissioner Sam Levine. It also directed the DCWP to take whatever actions it deems necessary to crack down on hidden or deceptive fees. In addition, it directed the office to monitor compliance, investigate potential violations, and enforce new rules designed to address such fees.

Executive Order 10, also issued on January 5, directed the DCWP to prioritize enforcement actions against “subscription tricks and traps” that “deceive or mislead consumers, including but not limited to, enrolling people into subscriptions, misrepresenting or failing to disclose pricing or renewal terms, and unfairly keeping them subscribed by making it difficult to cancel.” It further directed the DCWP to coordinate with the NYC Law Department and the New York Attorney General to combat such tactics.

Since then, the DCWP has taken action against several companies and sent compliance notices to companies in various industries. The compliance notices apprise companies of practices that would violate state and/or city law, arguably making any subsequent violations willful and making companies liable for the costs of city investigations if there are repeated violations.  We summarize these actions below.

Radiant Solar/The Solar Installation Industry

On January 22, the DCWP filed suit against Radiant Solar, a solar panel installation company, and its founder, owner, and director, William James Bushell.  The complaint alleges that the company was not properly licensed, pressured consumers, installed systems poorly, overpromised performance, signed consumers up for large loans without disclosing terms or obtaining consent, and gave undisclosed fee kickbacks to lenders. The DCWP seeks $18 million in restitution and about $1.7 million in penalties from Radiant Solar and its CEO — an amount reported to be the largest sum the city has ever sought from a home improvement contractor. According to The New York Times, city officials have said they do not know whether the company is still in business, as its website is gone and its phone has been disconnected.

Tax Preparation Companies

The DCWP also announced that in February it conducted a sweep of paid tax preparer locations and issued compliance notices warning of the ban on illegal overcharging and hidden junk fees. By law, tax preparers must post at their business entrances, and at each place at which orders are placed or payment is made, a price list that, among other things, identifies the services they provide, the minimum price for each service, and any additional fees they charge.  Before paying for any services, consumers have a right to receive a written estimate of the cost of each service offered by the tax preparer, including (a) basic filing fees, (b) refund anticipation loan or other loan interest rates, (c) refund anticipation loan, refund anticipation check, and refund transfer processing fees, and (d) any other related fees or charges. NYC Code 20-740.1, 20-750.

Employment Agencies

In addition, the DCWP reported sending compliance notices to more than 270 employment agencies in February, warning about “unlawful and exploitative conduct,” including charging jobseekers illegal advance fees, and then failing to provide refunds to applicants who were not placed in jobs, in violation of state law. NYGBL 185(3), 186. “The letters warn businesses to obey consumer protection laws that safeguard against illegal junk fees, misleading documentation, and other illegitimate tactics in which job seekers are forced to pay a substantial portion of their earnings in return for obtaining placement,” city officials said.

The Self Storage Industry

On February 9, the DCWP filed suit against a self-storage company with approximately 60 locations in the city. The DWCP asserted false advertising claims because of vermin infestation, rodent excrement, water damage, and mold in the company’s facilities, contrary to the company’s representations about cleanliness and pest control. The DCWP also accused the company of illegal bait-and switch-pricing, asserting that it advertised low fees but then increased prices with little to no notice, charged previously undisclosed late fees, and threatened to auction off consumers’ belongings absent full payment of all charges and fees. The DCWP is seeking restitution for consumers and civil penalties for violations of the NYC Consumer Protection Law.

New York Gyms and Health Clubs

Later in February, the DCWP sent compliance notices to 187 gyms and health clubs across the city. The letters urged businesses to comply with state laws governing membership cancellations, which effectively require that cancellation be as easy as enrollment, NYGBL 624(c), (d), and emphasized that practices that make cancellations intentionally difficult are considered deceptive or unconscionable business practices under the NYC Consumer Protection Law, NYC 20-700.  City officials noted that in 2025, the DCWP received dozens of complaints from consumers struggling to cancel their gym memberships.

Hotels

On February 22, the DCWP’s rule banning junk fees on hotel stays took effect.   City officials noted that some economists have estimated that the rule will save residents up to $35 million per year and visitors up to $31 million per year. The DCWP’s rule, modeled after the FTC’s junk fee rule, makes it a deceptive trade practice for a hotel to offer, display or advertise a price for a hotel stay without clearly and conspicuously disclosing the total price of the stay, including all mandatory fees, such as resort fees.

Landlords

On February 26, the DCWP participated in a hearing about unscrupulous rental practices, which it described as a first step towards quashing forced broker fees, hidden charges and other predatory practices. The NYC Fairness in Apartment Rental Expenses (FARE) Act prohibits brokers who represent landlords from charging broker fees to tenants.  NYC 20-699.21. City officials noted that since the FARE Act took effect, on June 11, 2025, the DCWP has received over 1,400 complaints against illegal broker fees and filed 50 summonses to real estate brokers, landlords, or property managers for violating the law.