Download Executive Order 09
COMBATTING HIDDEN JUNK FEES
WHEREAS, New Yorkers face a crisis of affordability and are often misled by junk fee pricing on goods and services, where one price is advertised but a different, higher price is charged at checkout; and
WHEREAS, hidden junk fee pricing is harmful to New Yorkers because junk fee pricing hides mandatory extra charges until the end of checkout, making the initial price seem lower than what is ultimately charged; and
WHEREAS, as a matter of basic fairness and honest business practice, New Yorkers deserve clear and transparent information about goods and services, including the full cost, before deciding whether to purchase such goods and services; and
WHEREAS, honest businesses that do not use junk fee pricing are at a competitive disadvantage and are undermined when bad actors use junk fee pricing to deceive customers with artificially low prices; and
WHEREAS, the City is committed to deploying all available resources to promote business practices that help New Yorkers make informed decisions when purchasing goods and services, thereby advancing affordability for all New Yorkers; and
WHEREAS, businesses that engage in junk fee pricing must be held accountable for misleading consumers and causing financial harm to New Yorkers;
NOW, THEREFORE, by the power vested in me as Mayor of the City of New York, it is hereby ordered:
Section 1. Establishment of a Citywide Junk Fee Task Force. There is hereby established an interagency Citywide Junk Fee Task Force (the “Task Force”). The Task Force shall:
a. Coordinate and advance the City’s work to combat hidden junk fees and promote affordability for New Yorkers, including by coordinating and aligning rulemaking, enforcement, City contracting standards, and public education efforts conducted by the responsible agencies pursuant to their legal authority;
b. Be co-chaired by the Deputy Mayor for Economic Justice or such Deputy Mayor’s designee and the Commissioner of the Department of Consumer and Worker Protection (DCWP) or such Commissioner’s designee; and
c. Consist of representatives from relevant City agencies, including but not limited to the Department of Housing Preservation and Development, the Department of Health and Mental Hygiene, the Department of Transportation, the Department of Small Business Services, and the Department of Buildings, and representatives of such other City agencies as the co-chairs deem necessary to carry out the work of the Task Force.
§ 2. Combatting Hidden Junk Fees. DCWP is directed to consider and take any appropriate actions it deems warranted to combat hidden junk fees, including the promulgation of rules, pursuant to its authority under subchapters 1 and 2 of Chapter 5 of Title 20 of the Administrative Code of the City of New York, Chapter 64 of the New York City Charter, and other applicable law, and make recommendations to the Task Force regarding new legislation that may be proposed relating to hidden junk fees.
§ 3. Hidden Junk Fees Compliance and Enforcement. As soon as practicable, DCWP shall monitor for compliance, investigate potential violations, and take such compliance and enforcement actions as are authorized by applicable law and any applicable rules and any rules promulgated to combat hidden junk fees.
§ 4. Effective Date. This Order shall take effect immediately.
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Zohran Kwame Mamdani
Mayor
