Mamdani’s consumer watchdog takes on ‘epidemic of corporate lawbreaking’

New York City’s new commissioner of consumer and worker protection is launching an “aggressive” campaign to fight junk fees and deceptive practices
Mamdani’s consumer watchdog takes on ‘epidemic of corporate lawbreaking’

Mamdani’s consumer watchdog takes on ‘epidemic of corporate lawbreaking’ Samuel AA Levine, New York City’s commissioner of consumer and worker protection, is initiating an aggressive campaign against corporate lawbreaking, focusing on junk fees and deceptive subscriptions. He aims to increase consumer complaints and enforce consequences for companies that engage in dishonest practices, drawing comparisons to national regulatory bodies. A key initiative is a proposed ‘click to cancel’ rule to simplify subscription cancellations, making New York the first municipality with such a law.

  • Samuel AA Levine, NYC’s new commissioner of consumer and worker protection, wants to increase the number of consumer complaints received annually.
  • He is continuing his fight against junk fees and deceptive subscriptions, having previously worked at the FTC.
  • A new ‘click to cancel’ rule for subscriptions is being proposed, which would be a first for a US municipality.
  • Levine describes a “decades-long epidemic of corporate lawbreaking with very few repercussions” in the United States.
  • Critics view New York’s new enforcement posture as aggressive, comparing Levine to state attorneys general or the FTC.
  • Levine believes that corporations ripping off consumers must face consequences, viewing this as common sense.
  • Digital interfaces and automatic recurring billing have made subscriptions more prevalent and ripe for manipulation.
  • Levine emphasizes that companies need to thrive but must operate honestly and adhere to rules.
  • He compares corporate lawbreaking to offenses like parking violations, arguing that both should have severe consequences.
  • The proposed ‘click to cancel’ rule requires companies doing business with New Yorkers to make cancellations simple.
  • Enforcement will be aggressive, utilizing mediation and potential lawsuits in city and state courts.
  • Levine is personally driven by a principle of not allowing companies to “nickel-and-dime” people, no matter how small the amount.
  • The city’s ‘click to cancel’ rule is seen as legally sound, differing from a federally struck-down FTC rule on procedural grounds.
  • Industry groups strongly opposed the click-to-cancel rule due to its profitability, estimating “subscriptions people don’t want” as a billion-dollar business.
  • Levine plans to continue tackling junk fees and expects additional policy initiatives and coordination with other agencies in the coming months.
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