Unbridling the FTC and Giving POWER to the NYC People

Keeping with recent trends, lawmakers at the federal and local levels continue to introduce legislation that would expand consumer protection authority. New York City Mayor Zohran Mamdani recently announced the POWER Act, which is described as a first-in-the-nation bill that would make New York City’s consumer and worker protections the strongest in the country; and two members of Congress reintroduced bills that would empower the FTC to respond independently and swiftly to unfair and deceptive practices. Taken together, these proposals signal a continued push in the legislatures to expand consumer protection authorities.

Unfettering the FTC

Earlier this month, Representatives Kathy Castor (FL-14) and Jan Schakowsky (IL-09) re-introduced two bills aimed at removing procedural obstacles to the FTC’s ability to act against unfair and deceptive practices. The first bill, sponsored by Rep. Castor, is the 21^st Century FTC Act (H.R. 10540); the second, sponsored by Rep. Schakowsky, is the FTC Autonomy Act (H.R. 10701). 

Both bills would allow the FTC to seek civil penalties directly for violations of the FTC Act – authority that the FTC has not had since the Supreme Court’s decision in AMG Capital Mgmt., LLC v. FTC, 593 U.S. 67, 141 S. Ct. 1341 (2021).  

The 21^st Century FTC Act provides for two key changes: (1) a streamlined rulemaking process for the FTC and (2) authority for the FTC to seek civil penalties for violations of either the FTC Act or an FTC rule. Under the proposed rulemaking changes, the FTC would be able to issue rules defining unfair or deceptive practices without advance notice of rulemaking, evidence of widespread patterns of the practice, or mandatory informal hearings. Courts also could not set aside such a rule simply because the FTC had not completed a regulatory analysis. 

The FTC Autonomy Act would similarly permit FTC attorneys to bring cases for civil penalties without first consulting the U.S. Attorney General. 

Neither bill is new — both were introduced previously. Their reintroduction signals a continued appetite to empower the FTC to act quickly in defining unfair and deceptive practices and to recover civil penalties for violations.

NYC Wants POWER for its People

On October 6, 2026, New York City Mayor Zohran Mamdani and Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine announced plans to introduce the POWER Act, one of three bills that comprise Mayor Mamdani’s consumer protection initiatives.

The POWER Act represents a sweeping expansion of the City’s consumer protection laws by creating a municipal private right of action allowing workers, consumers, tenants, small businesses, and nonprofits to bring their own lawsuits against predatory business practices. Although N.Y. Gen. Bus. Law § 349 was recently expanded to prohibit deceptive, unfair, and abusive practices, current state law only allows individuals to sue for deceptive practices; unfair and abusive practices must be pursued by government authorities. The POWER Act proposes to establish a private right of action that would allow individuals, nonprofits, and small businesses to sue over unfair competition and unfair, deceptive, abusive, or unlawful practices. 

The bill’s key definitions are written broadly: 

An “abusive act or practice” is one that materially interferes with a consumer’s ability to understand a term or condition of a good or service, or that takes unreasonable advantage of a consumer’s lack of understanding, inability to protect their own interests, or reliance on the actor as acting in the consumer’s interest. “Abusive acts” also include conduct prohibited by 12 U.S.C. § 5531. 

An “unfair act or practice” is one that causes or is likely to cause substantial injury that consumers cannot reasonably avoid and is not outweighed by countervailing benefits to consumers or competition. “Unfair” acts also include conduct prohibited by 12 U.S.C. § 5531 and 15 U.S.C. § 45.

Some have opposed the new legislation, warning of the risk of costly litigation against small businesses. If enacted, the POWER Act would take effect immediately.

The Mayor’s office also announced the introduction of the Truth in Pricing Act, which would simplify the City’s price display rules, and an amendment to the City’s existing Consumer Protection Law that would remove a lengthy rulemaking requirement, allowing DCWP to act more expeditiously against unconscionable business practices.

Takeaway: Private and Government Enforcement Ahead

The proposed New York City POWER Act is part of the growing trend of state and local governments stepping in and stepping up their consumer protection activity. The federal bills would make it easier for the FTC to bring enforcement actions and would empower the agency to recover penalties that it currently cannot. While supporters of the POWER Act present it as a necessary response to scaled-back federal protections, the reintroduction of the 21^st Century FTC Act and FTC Autonomy Act signals a potential increase in FTC enforcement activity. Companies should review consumer-facing practices now; if these bills pass, a first violation could lead to civil penalties, and the FTC could pursue those penalties directly. Companies operating in New York City should also prepare for a greater risk of private litigation. Mintz will continue to monitor the progression of these bills. If you have questions about these developments or their potential impact on your business, please contact the authors or a member of Mintz’s Consumer Protection Defense Practice.

Subscribe To Viewpoints