New York City businesses could face an expansion of private litigation over unfair, deceptive and abusive practices under proposed legislation that would reach beyond financial services.

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The POWER Act, short for People and Organizations Winning Economic Relief, would create a broad private right of action across business, trade and commerce. The proposal combines expansive prohibitions with per-violation damages and mandatory attorneys’ fees, potentially increasing exposure for digital platforms, retailers, landlords and other businesses, according to a Friday (Oct. 23) analysis by Hinshaw & Culbertson.

Introduced Oct. 8 at Mayor Zohran Mamdani’s request, the bill remained in the City Council’s Committee on Consumer and Worker Protection as of the analysis’s publication. It would take effect immediately if enacted, per the analysis.

Its central change concerns who can sue. The Federal Trade Commission Act does not provide a general private damages action under Section 5, relying instead on the FTC for enforcement, the analysis said. The Consumer Financial Protection Act similarly relies on public enforcement and applies to consumer financial products and services.

New York State’s FAIR Business Practices Act expanded state prohibitions to include unfair and abusive practices, but did not create a private right of action. Private plaintiffs retain an avenue for deceptive practices claims under General Business Law Section 349, subject to its limitations, according to the analysis.

The POWER Act would fill that gap locally, authorizing private claims involving unfair, deceptive, abusive or unlawful practices, as well as unfair methods of competition, the analysis said.

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