Mayor Mamdani to Introduce POWER Act Allowing New Yorkers to Sue Predatory Corporations for Unfair Business Practices

NEW YORK – Today, Mayor Zohran Kwame Mamdani and Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine announced the planned introduction of the POWER (People and Organizations Winning Economic Relief) Act, legislation that would make New York City’s consumer and worker protection laws the strongest in the country. The POWER Act, sponsored by Chair of the Committee on Consumer and Worker Protection Harvey Epstein, would create a municipal private right of action, bringing sweeping changes to the way workers, consumers, tenants, small businesses, and nonprofits can seek relief from predatory business practices.

The bill would, among other things:

• Allow tenant unions to sue landlords for deceptive trade practices;
• Allow taxi drivers to sue financing companies over unconscionable loan terms;
• Allow consumers scammed by predatory for-profit schools to seek loan relief; and
• Allow nonprofits to bring claims on behalf of themselves, their members, and the public.

“New York City is a working-class city. Yet for far too long we've trailed the country when it comes to giving working people the power to take on corporations that violate their rights and try to cheat them,” said Mayor Mamdani. “That’s why we are excited to introduce the POWER Act, which will finally give New Yorkers and the organizations who represent them a legal pathway to seek recourse for unfair business practices and make our city a national model for consumer, worker, tenant, and small business protection. The POWER Act will enable tenant unions to take landlords to court and win back wrongfully withheld security deposits. It will allow local small businesses who face competition from corporate giants to file suit for unfair business practices. It will empower seniors who lose hundreds of millions of dollars every year through targeted scams to get the justice they are owed. Our administration will not sit back while New Yorkers are taken advantage of. The POWER Act is about giving New Yorkers their rights back and building a more just economy for working people.”

The POWER Act will be introduced on behalf of the Mayor by Chair Epstein at the next stated City Council meeting on October 8th.

Mayor Mamdani will also introduce two additional consumer protection bills. The Truth in Pricing Act simplifies the City's pricing display rules, cutting compliance costs for businesses while keeping prices transparent for shoppers. A separate amendment to the City's Consumer Protection Law removes a lengthy rulemaking requirement, letting DCWP act faster against unconscionable business practices.

“The Mamdani administration came into office with a commitment to return power to the working-class people of this city. With this legislation, we will do exactly that,” said Deputy Mayor Su. “Often, corporate practices that steal time and money from workers and consumers are designed to push the limit of prohibited practices. We will equip New Yorkers with new tools to take on predatory companies, bad landlords, scammers, and other actors who exploit them and build not only an economy but a city that works for working people.”

“The POWER Act represents one of the single greatest expansions of consumer and worker rights in New York City history, putting power directly in the hands of New Yorkers to secure their own economic justice,” said DCWP Commissioner Levine. “Establishing a broad private right of action has never been more urgent, especially as the federal government retreats from protecting working people. I am grateful to the advocates who have long called for this critical right, and I look forward to working with Mayor Mamdani and the City Council to swiftly pass this bill.”

“We're using every tool at our disposal to empower tenants and stand up to unscrupulous landlords. The POWER Act would give tenants a stronger basis to fight for a fairer city in court, taking on bad actors and unfair practices across the five boroughs,” said Cea Weaver, Director of the Mayor’s Office to Protect Tenants.

“The POWER Act will give everyday New Yorkers the direct legal authority to fight back when bad actors take advantage of them,” said Council Member Harvey Epstein. “As the federal government continues to roll back workplace protections and labor policies, I am proud to be introducing legislation that will expand the power of the Consumer Protection Law and create a more swift path to justice for workers, small businesses, and unions alike. I’m grateful to be working alongside the Mayor, DCWP, and my colleagues to fortify consumer and workers' justice in our city.”

“I’m proud to help lead the legislative effort with Mayor Mamdani and Commissioner Levine to ensure our consumer protection laws set the national standard,” said Council Member Chi Ossé. “Too often, the most powerful private actors have escaped accountability for unconscionable business practices, and it’s time for the City of New York to take robust measures to rein them in. The days of New Yorkers being taken advantage of by businesses that bet you're too busy to fight back are nearing an end. I look forward to passing this bill to give the city the rightful power to hold them accountable and make life a lot easier.”

"The Power Act will put power back in the hands of consumers, workers and small businesses at a time when the federal government has turned its back on them. Companies that prey on cash strapped New Yorkers, offering risky loan products designed to trap restaurant owners, drivers, and workers in cycles of debt, will face legal consequences,” said Lorelei Salas, Senior Fellow Century Foundation and Protect Borrowers and former DCWP commissioner. “According to a report by The Century Foundation and Protect Borrowers, New York City residents have seen their debt soar in the last few years and this legislation will help to protect their pockets. I commend Mayor Mamdani, Commissioner Levine and Chair Epstein for their vision."

“Consumers, homeowners, workers, and small businesses in NYC deserve the same fundamental protections against predatory conduct that residents of every other state already enjoy, and that’s what the POWER Act promises,” said Protect Borrowers legal director Winston Berkman-Breen. “We are in a raging affordability crisis, exacerbated by federal agencies’ refusal to enforce existing protections. The POWER Act offers relief and fills this accountability gap by mirroring these protections at the local level. We applaud the entire City government, from the Council to the Mayor’s Office to DCWP, for coming together to take this powerful but common-sense step to guarantee fairness for New Yorkers.”

The POWER Act
Under current New York consumer protection laws, individuals can only sue over deception — a narrow slice of unlawful business conduct. The POWER Act closes that gap, letting individuals, workers, and small businesses sue over unfair methods of competition and unfair, deceptive, abusive, or unlawful practices. Today, that gap lets bad actors cheat New Yorkers — especially small businesses — with little consequence.

New York State laws let individuals sue over deceptive practices, but does not allow them to sue over unfair or abusive ones. The POWER Act would allow tenants, workers, small businesses, and nonprofits to take companies to court over unfair and abusive practices such as overcharging rent.

Truth in Pricing Act
New York City's price display rules currently vary by store size and product type, creating confusion for businesses and consumers alike. The Truth in Pricing Act, sponsored by Chair Epstein and Council member Carmen De La Rosa, simplifies this: business owners can choose to display prices on the item or on the shelf. It lowers compliance costs while preserving price transparency and checkout accuracy.

Consumer Protection Law Amendment
DCWP currently cannot challenge unconscionable business practices without first completing a lengthy rulemaking process. This amendment, sponsored by Council Member Chi Ossé, removes that requirement, letting DCWP respond quickly to serious misconduct and aligning City law with state and federal consumer protections, including the Federal Trade Commission Act.

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