Department of Consumer Affairs to give store owners break from onerous fines

Dep. Commish says plan is to reduce violations by $5 million

September 16, 2014 By Paula Katinas Brooklyn Daily Eagle

Amit Bagga, deputy commissioner of the Department of Consumer Affairs, tells Community Board 10 that the watchdog agency will give merchants a 30-day window in which to rectify a violation.

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A high-ranking Department of Consumer Affairs official came to Bay Ridge Monday night and delivered some good news for struggling mom-and-pop stores: the city is going to get off your back!

Amit Bagga, deputy commissioner for external affairs at the Dept. of Consumer Affairs (DCA), told Community Board 10 that the agency is making a concerted effort to issue fewer violations against the city’s small business owners than previous city administrations.

In fact, Bagga said, DCA has set a goal of reducing the amount of fines levied against small businesses by $5 million by the start of Fiscal Year 2016, which begins on July 1, 2015.

In fiscal year 2014 (July 1, 2013 to June 30, 2014) the city collected $16 million in fines against merchants for such violations as not listing the store’s name and address on a customer receipt or not listing a price on every single item.

Under Mayor Bill de Blasio and Consumer Affairs Commissioner Julie Menin, the DCA’s has a different stance, according to Bagga. “This administration is taking a very different approach. We are looking at reducing the burden on small businesses,” he told the community board at the board’s monthly meeting at the Shore Hill community room, at 9000 Shore Road.

That’s good news, especially for merchants in the outer boroughs, according to Bagga, who said store owners in Brooklyn, Queens, Staten Island, and the Bronx were hit hard by violations in the past.

DCA, which Bagga described as an agency “in the business of making sure businesses are in compliance with the law,” licenses and regulates more than 80,000 businesses in New York City. Nearly all brick and mortar businesses operating in the five boroughs fall under DCA’s purview.

But the agency doesn’t want to play the role of domineering Big Brother. In an effort to follow an edict from de Blasio to reduce onerous fines, the DCA has developed the Small Business Relief Package, a plan containing nearly two dozen reforms.

Among the reforms: fines that in the past ranged from $1,000 to $10,000 will now range between $250 and $1,200.

DCA is also going to take a second look at certain types of “picky” violations to see if merchants with an otherwise clean record can get a break from them, Bagga said. As an example, he pointed to a hypothetical situation in which a grocer who has never had a violation before has a shelf stocked with cans of peas and one lone can that, unlike all the others, does not have a price affixed to it.

In certain situations, the merchant will be given time to rectify a violation instead of being hit with a fine right away. “We’re actually going to give you 30 days to fix the violation,” Bagga said.

“Small businesses are the heart and the economic engine to this city, and following the mayor’s lead, DCA is committed to making our operations fairer, simpler and less onerous on law-abiding businesses,” Menin said when the Small Business Relief Package was introduced in July. “The reforms will create an easier environment for businesses to operate in our city while at the same time ensuring that we remain vigilant in our work protecting consumers and keeping the marketplace fair.”

Carlo Scissura, president and CEO of the Brooklyn Chamber of Commerce, said he agreed with the effort to give mom-and-pop stores a break.

“The best way to strengthen our neighborhoods is to give our small businesses the tools they need to thrive. Commissioner Menin understands that issuing warnings instead of fines, and giving businesses a chance to correct violations, is the best way to ensure the quality New Yorkers deserve without creating additional burdens on business owners. I applaud Mayor de Blasio for working with businesses and supporting our job creators,” Scissura said in a statement.

All of this sounds good to Arlene Rutuelo, owner of Nordic Delicacies, a shop on Third Avenue in Bay Ridge that sells Norwegian-inspired food, clothing, and souvenirs. “That is wonderful, if they’re willing to do that,” she told the Brooklyn Eagle on Tuesday morning.

“Small businesses, we’re all struggling. We’re trying to be good owners and good neighbors in our communities. We need all the help we can get,” Rutuelo said.

But Rutuelo, who has been in business for more than two decades, also expressed skepticism about the de Blasio Administration’s plan. “It sounds great, but $5 million is $5 million. It means $5 million less in the budget. I’m worried that if they’re going to reduce the fines by $5 million, they’ll be looking to make that money up in other ways,” she said.

For more information in the DCA’s plan, visit http://www.nyc.gov/html/dca/html/home/home.shtml.