NEW YORK (VINnews) — Mayor Zohran Mamdani and the city’s Department of Consumer and Worker Protection announced Tuesday plans for legislation that would give New York City residents broader legal power to sue businesses over unfair and abusive practices.
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The POWER Act, sponsored by City Council Consumer and Worker Protection Committee Chair Harvey Epstein, would create a municipal private right of action, allowing workers, consumers, tenants, small businesses and nonprofits to bring certain claims directly to court.
The legislation would allow tenant unions to sue landlords over deceptive practices, taxi drivers to challenge financing companies over unconscionable loan terms and consumers harmed by predatory for-profit schools to seek relief from related loans. Nonprofits also would be able to bring claims on behalf of themselves, their members and the public.
Mamdani said the legislation is intended to give New Yorkers greater leverage against businesses that violate consumer and worker protections.
The POWER Act would expand the types of conduct that could be challenged in court. Under current city and state consumer protection laws, individuals generally can sue over deceptive practices but have more limited rights to pursue unfair or abusive conduct.
The administration also plans to introduce two additional consumer protection measures. One, the Truth in Pricing Act, would simplify city rules governing how businesses display prices, allowing retailers to post prices on products or shelves while reducing compliance requirements.
A second measure would remove a lengthy rulemaking requirement that currently limits the Department of Consumer and Worker Protection’s ability to challenge unconscionable business practices, allowing the agency to act more quickly against serious misconduct.
The POWER Act is expected to be introduced at the City Council’s Oct. 8 meeting. If approved, the measures would significantly expand the city’s role in enforcing consumer and worker protections.
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