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Consumers of good services in New York City may be getting some of the most sweeping protections against consumer fraud available in the United States. Mayor Zohran Mamdani, together with the New York City Department of Consumer and Worker Protection, have sponsored legislation that would give “a person who is injured” a private right of action to sue companies located in New York City for “abusive” or “unfair” business practices. This law, called The People and Organizations Winning Economic Relief (POWER) Act, is designed to expand the protections already available to New York consumers by the state’s consumer protection law, General Business Law Section 349. (“GBL §349”).
 

For decades, GBL §349 only banned deceptive acts or practices in any business, trade, or commerce, or in providing any service in the State of New York. Unlike many other states’ consumer protection laws, until recently, New York State offered no protection for consumers subjected to “unfair” or “abusive” practices. This limitation was lifted in 2026 with the state’s Fair Business Practices Act. However, while consumers themselves may bring GBL §349 claims for deceptive acts and practices, the Fair Business Practices Act only empowers the attorney general to pursue claims for “unfair” and “abusive” practices. The POWER Act aims to correct this limitation. 
 

The rights afforded under the POWER Act would be very broad. According to the proposed legislation, a plaintiff would be able to sue on behalf of themselves or similarly situated people, or on behalf of the general public. Plaintiffs would include individuals, small businesses and qualifying not-for-profit corporations. The bill imposes an injury requirement, but the injury requirement is extremely broad: “injury means any impairment of a person’s lawful interests, whether or not such impairment to such interests are quantifiable, economic or monetary in nature, including but not limited to loss of time, loss of property, loss of security, or other harm caused by a violation of this chapter.” The legislation proposes plaintiffs may seek compensatory, injunctive and declaratory relief, including such plaintiffs’ actual damages and $2,500 per violation. Reasonable attorney’s fees and costs would be available to a prevailing plaintiff. 
 

The POWER Act would provide plaintiffs with rights substantially greater than those available under most consumer protection laws, both state and federal. A plaintiff would not have to prove reliance; and although there is a requirement of pre-suit notice, the prospective defendant’s correction of the issue does not bar the action. The bill contains no aggregate cap on the $2,500 per violation remedy, so the cost to a potential defendant could soar. 
 

The bill remains in committee as of the date of this writing, and may change through committee consideration or amendment. If enacted, the POWER Act would take effect immediately.