Authors: Ronald Urbach of Davis+Gilbert and Robert Chappell Jr. of Davis+Gilbert
The Bottom Line
- New enforcement era begins: NYC has a new “sheriff” with expanded powers and strong allies. Any company that advertises and markets products or services to consumers in New York City must learn the rules and comply with the law. If not, there will be consequences.
- Mayor’s priorities are clear: Mayor Mamdani’s January 5, 2026 executive orders on “junk fees” and “subscription programs” show that consumer protection, corporate accountability, and compliance with City laws and regulations are top priorities. The administration believes that aggressively enforcing consumer protection will help tackle the affordability crisis.
- FTC-style enforcement: With former FTC Chair Lina Khan as a key mayoral adviser, and the appointment of Commissioner Sam Levine (former Director of FTC’s Bureau of Consumer Protection under Chair Khan) as Head of the NYC Department of Consumer and Worker Protection (DCWP), businesses should anticipate (if not expect) a return to robust and aggressive oversight of advertising and marketing practices in New York City.
- History repeats: This harkens back to the days of Mark Green who helped make the then NYC Department of Consumer Affairs a feared government regulator for national advertisers and marketers.
Advertisers and marketers who target NYC consumers should take note: the appointment of former FTC Bureau of Consumer Protection Director Sam Levine as Commissioner of the NYC Department of Consumer and Worker Protection (DCWP), combined with Mayor Mamdani’s recent executive orders on consumer protection, signals a major shift in enforcement priorities. With former FTC Chair Lina Khan serving as a key mayoral adviser, businesses can expect the kind of robust, aggressive oversight of advertising and marketing practices not seen since the Mark Green era. This alert outlines what advertisers need to know and how to prepare.
History of the NYC Department of Consumer and Worker Protection (DCWP)
The DCWP, formerly the New York City Department of Consumer Affairs, was established in 1969 as the country’s first municipal consumer protection agency of its kind. Following the passage of the City’s consumer protection law, the department was created with broad authority to protect New Yorkers from deceptive business practices.
Under its broad authority, the DCWP oversees advertising that reaches NYC consumers — including national advertising. Along with the City’s Consumer Protection Law, the DCWP has undergone periods of heightened, aggressive enforcement against national advertisers believed to be non‑compliant with the City’s Administrative Code and the Rules of the City of New York. Further, in 1989, the Department of Consumer and Worker Protection set advertising guidelines for businesses requiring DCWP licenses. Examples of key areas of concern under the City’s advertising rules include pricing claims, offer terms, bait-and-switch tactics, free offers, and other false or misleading claims and illustrations.
New Leadership at the DCWP
Prior to the inauguration of Mayor Mamdani, it was announced that former Director of FTC’s Bureau of Consumer Protection Sam Levine would serve as the Commissioner of DCWP. During his time at the FTC, Levine oversaw enforcement, rulemaking, and policy work in many areas, including marketing, digital advertising, and consumer reporting.
While Levine served at the FTC, Lina Khan, co‑chair of Mayor Mamdani’s transition team, was the chair of the federal agency. Under the Khan‑era FTC and Levine’s leadership, the agency increased actions and rulemaking regarding issues concerning the advertising and marketing practices. Although Khan’s long-term role under the Mamdani administration remains unclear, Levine’s appointment signals a return to the DCWP’s aggressive oversight of business practices impacting New Yorkers — which includes national advertising and marketing practices.
The Mayor’s Recent Executive Orders
Mayor Mamdani’s two executive orders seeking to advance his affordability agenda, emphasizing pricing transparency, corporate accountability, and compliance with the City’s laws, are a recent indication of the administration’s intention to increase oversight and enforcement at the DCWP.
- Executive Order 10 (Fighting Subscription Tricks and Traps), directed the DCWP to monitor, investigate, and take enforcement action against businesses’ subscription‑related practices 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.” The order also directs DCWP to consider and take action to combat “subscription tricks and traps” through rulemaking or the issuance of recommendations to City Council.
Strong Allies
At the signing of the two executive orders. Mayor Mamdani was joined by NY Attorney General Letitia James, City Council Speaker Julie Menin, and Commissioner of the DCWP, Sam Levine. We can expect that the NY City Council will ensure that the Mayor and Commissioner have sufficient resources to accomplish their consumer protection mission. Standing side by side, NY Attorney General James will support the consumer protection mission both by words and action.
Implications for National Advertisers and Marketers
While these executive orders concern junk fees and subscriptions, each largely mirrors initiatives of the Khan‑era FTC. The practical implications of such consumer protection monitoring and enforcement in New York City will likely play out for national advertisers and marketers. In the immediate term, with Mayor Mamdani in office and the appointment of Commissioner Levine, businesses should prepare for a potential return to robust, aggressive oversight by the DCWP of national advertising and marketing that reaches New Yorkers.
Drawing from the strong record of consumer protection at the FTC during Chair Khan and Bureau Director Levine’s tenure, we can look to that record for topics and issues to now be taken up by the newly revitalized NYC DCWP. Advertisers and agencies that take proactive steps now will be better positioned to avoid costly enforcement actions down the road.