Zohran Mamdani signs executive orders targeting 'hidden junk fees'

New York City Mayor Zohran Mamdani on Monday signed two more executive orders, this time cracking down on corporations charging so-called "hidden junk fees."

At an outdoor gym on the Long Island City, Queens, waterfront, the new mayor said a broken system has contributed to small fees charged on top of purchases such as gym memberships and concert and airplane tickets that "buries New Yorkers deeper in a cost of living crisis that defines too many of our daily existences."

The new pair of executive orders comes after a slew of tenant protections he initiated on his first day in office, in addition to voiding all executive orders from predecessor Eric Adams' administration from September 2024 to the end of the former mayor's term last month. Mamdani, 34, a former state assemblyman and democratic socialist, was elected on a campaign platform that promised relief to everyday New Yorkers burdened by the city's high cost of living.

Two top Mamdani officials — Julie Su, who holds the newly created role of deputy commissioner for economic justice, and Samuel Levine, commissioner of the city's Department of Consumer and Worker Protection — will lead a new task force to investigate companies accused of deceptively charging fees to consumers. The actions also beef up the powers of Levine, former director of consumer protection in the Federal Trade Commission during the Biden administration, and his department in enforcement actions against companies found to be breaking the rules, Mamdani said.

Consumer complaints can be filed on the DCWP's website. It was unclear Monday what penalties companies would face if found in violation of the rules.

Among the companies cited on Monday were Ticketmaster, Grubhub and Equinox — all of whom faced legal action for what Mamdani officials called "predatory" behavior.

Ticketmaster and its parent company, Live Nation, are defending a class action lawsuit filed on behalf of concertgoers who allege the event-purchasing website overcharged for major concert tickets since 2010, including shows like Taylor Swift's pricey Eras Tour.

Grubhub in December 2024 agreed to pay $25 million to settle charges filed against the company by the FTC alleging the app-based food delivery service deceived users of fees and blocked access to their accounts and funds, misled workers about how much money they would make delivering food, and listed restaurants on its platform without their permission.

Equinox last May had to pay $600,000 and change its subscription practices to settle claims filed by New York State Attorney General Letitia James, whose office found the gym company failed to clearly disclose its subscription terms and offer a cost-effective and easy way to cancel subscriptions, provide consumers with the subscription acknowledgment required by New York law, and offer cost-effective and easy-to-use online cancellation mechanisms.

By Candice Ferrette

candice.ferrette@newsday.comcandiceferrette

Candice Ferrette covers Nassau County government and politics on Long Island. She has been a reporter at Newsday since 2011.