New York City’s Department of Consumer Worker Protection and Manhattan District Attorney’s Office Partner on Consumer Protection and White Collar Enforcement

DCWP-Manhattan District Attorney’s Office Partnership

On August 20, 2026, New York City Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine and Manhattan District Attorney (DA) Alvin Bragg announced a memorandum of understanding (MOU) to pool information and coordinate strategy on investigations involving worker exploitation, wage theft, housing violations, and fraud targeting immigrants. The new partnership means that certain conduct previously subject to DCWP civil penalties may now be referred for criminal investigation and prosecution by the Manhattan DA’s Office. 

Commissioner Levine said the collaboration follows a model he had pioneered at the U.S. Federal Trade Commission (FTC), where (as Director of the FTC’s Bureau of Consumer Protection from 2021 to 2025) he expanded the agency’s criminal liaison in order to refer more cases for criminal prosecution. District Attorney Bragg, who established a “worker protection unit” to combat wage theft in 2023, indicated that the criminal enforcement in wage theft cases turns on the scale of the violation—including duration and number of affected employees—and whether intimidation or retaliation was involved.

Under Mayor Zohran Mamdani and Commissioner Levine, DCWP has adopted an aggressive approach to consumer and worker protection enforcement. DCWP’s MOU with the Manhattan District Attorney’s office is the latest in a series of partnerships (including with the New York City Law Department and the New York State Attorney General). Drawing on Levine’s prior leadership experience at the FTC, DCWP is now emphasizing large-scale enforcement efforts similar to those historically taken by federal regulators rather than by municipal agencies.

New Leadership and Aggressive Enforcement Posture

The MOU is the latest in a series of innovative moves by DCWP under Commissioner Levine, who assumed the role in January 2026. While serving as Director of the FTC’s Bureau of Consumer Protection during the Biden administration, Levine developed a reputation for seeking to reinvigorate long-unused consumer protection laws, led the agency’s largest-ever kids’ privacy violation settlement, and secured at least $500 million in judgments against junk fees. Levine has described DCWP’s role as being “the tip of the spear in city government for taking on the biggest companies that are squeezing workers, that are squeezing consumers, that are driving people out of the city.”

Levine’s appointment as DWCP Commissioner was championed by former FTC Chair Lina Khan, who co-chaired Mayor Mamdani’s transition team, and who led a group tasked with  identifying overlooked or underused mayoral authority that Mamdani could use to act quickly. Within days of beginning his term, Mayor Mamdani signed Executive Order No. 09, Combating Hidden Junk Fees, establishing a citywide task force and directing DCWP to crack down on hidden or deceptive fees, and Executive Order No. 10, Fighting Subscription Tricks and Traps, directing DCWP to prioritize enforcement against deceptive subscription practices and to coordinate with the NYC Law Department and the New York State Attorney General. The order called for DCWP to team up with the New York City Law Department and the New York State Attorney General for coordinated enforcement.

Since his appointment, Levine has reviewed DCWP’s existing authorities and compiled a list of immediate priorities, including protecting renters and immigrant New Yorkers, cracking down on junk fees, and going after so-called “ghost positions”: job postings that companies advertise but never intend to fill. DCWP has issued a rule prohibiting hotels from adding hidden “destination” or “resort” fees and banning the practice of placing hidden holds on credit cards and has taken  legal action against three employment agencies that allegedly used “illegal advance fees” to systematically exploit economically vulnerable, non-native English speakers who are desperate to find employment to provide security for their families. Notably, Levine has stated that the hotel fee prohibition applies to any business that markets to New York City residents, regardless of location.

Most recently, DCWP announced the adoption of the Click-to-Cancel Rule—the nation’s first municipal click-to-cancel rule imposing disclosure, cancellation and notice requirements on subscription-based business serving New York City consumers, effective October 1, 2026.  DCWP currently operates with a $75 million budget and approximately 400 staff; Levine has said he wants to double both figures, adding data scientists and attorneys to bolster enforcement capacity.

Significant Enforcement Actions to Date

Under Levine’s leadership, DCWP’s enforcement activity has spanned multiple sectors. Earlier this year, DCWP sued a food-delivery application and its CEO, seeking to shut down the company entirely for alleged wage theft. The lawsuit alleges that the company charged its couriers excessive fees, ignored the city’s minimum pay rules, and collected millions in illegal fees.

DCWP separately released a report accusing online food delivery companies of “engineered design tricks” that deprived workers of an estimated $550 million in tips—changes the companies made after Levine directed staff to ramp up scrutiny of delivery app compliance. The report also referenced new laws requiring restaurant delivery applications to provide consumers with tipping options, including a 10 percent tip option or custom tip amount during checkout.  Companies have since sought to overturn the law, and a federal judge partially denied New York City’s motion to dismiss last month.¹

The city also secured a $5 million settlement with food delivery platforms, including reinstatement of as many as 10,000 delivery workers, and one delivery app exited New York City entirely while under DCWP investigation.

Beyond the gig economy, DCWP has targeted employers to recover millions in restitution for more than 1,600 workers; sued a national, publicly traded self-storage company for an alleged bait-and-switch scheme and obtained a $1 million consumer restitution fund; and sought nearly $20 million from a solar contractor and its CEO—the largest sum the city has ever sought from a home improvement contractor.

Federal Enforcement Pullback as Catalyst

The Mamdani Administration has explicitly positioned its enforcement agenda as filling a gap left by the federal government. Commissioner Levine has called the FTC “asleep at the switch,” stating: “I don’t think American consumers can count on the federal government to do anything to help with the affordability crisis we’re facing.”

Meanwhile, the Manhattan District Attorney’s Office has been expanding its own white collar footprint, creating a Housing & Tenant Protection Unit, a Worker Protection Unit, and recently indicting six individuals and two corporate defendants in a $76 million fraud case.

Implications for Businesses

As a result of the DCWP-Manhattan District Attorney’s Office partnership and related enforcement, businesses should expect:

• Expanded criminal liability: The MOU creates a formal pathway for DCWP civil investigations to be referred for criminal prosecution. Wage theft, tenant harassment, and immigration fraud are likely initial focal points.
• Structural remedies beyond fines: DCWP is pursuing operational mandates including worker reinstatement, compliance monitoring systems, and monthly reporting obligations.
• Potential extraterritorial reach: DCWP has signaled that businesses marketing to New York City consumers may be subject to city rules regardless of physical location.

Compliance Considerations

For compliance officers and in-house counsel, key steps include:

• Audit pricing and fee disclosures: Review all consumer-facing pricing for compliance with the city’s junk-fee framework. Mandatory fees or add-on charges not clearly disclosed upfront risk enforcement action.
• Review subscription and cancellation practices: Ensure clear disclosure of renewal terms and accessible cancellation pathways, particularly in light of the proposed click-to-cancel rule.
• Assess wage and hour compliance: Businesses relying on gig workers or non-traditional labor arrangements should review compliance with NYC pay, scheduling, and worker-protection laws, which DCWP has enforced aggressively.
• Prepare for inspections and inquiries: Update internal protocols for responding to DCWP or Manhattan District Attorney’s Office investigations, and ensure employees are trained on escalation procedures given the new criminal referral pathway.

The convergence of DCWP’s aggressive civil enforcement posture with a new criminal referral pathway through the Manhattan District Attorney’s Office represents a meaningful escalation in the risk environment for businesses operating in New York City. Companies should act now to reassess compliance programs and prepare for heightened scrutiny.

¹ Memorandum Decision and Order at 3, ECF No. 45, DoorDash Inc. et. al. v. The City of New York, 1:25-cv-10268 (S.D.N.Y. Dec. 11, 2025).