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Changes in DCWP's approach to fines for small businesses

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Council Member Julie Menin discusses the changes made to DCWP's approach to fines for small businesses since 2014. Carlos Ortiz responds by acknowledging the importance of rightsizing penalties and balancing consumer protection with supporting small businesses.

DCWP implemented a small business relief package to allow businesses to cure certain violations
The agency aims to match penalties to the severity of violations
Recent updates to consumer protection laws have modernized fines and addressed online retail activities

Julie Menin

0:14:18

So one thing is, you know, when I became commissioner in 2014, previously DCWP well, previously, it was DCA.

0:14:24

But previously, DCA had taken the posture in earlier years of assessing a lot of onerous fines on small businesses.

0:14:33

So that if, for example, a bodega was selling a can of peas and it was priced incorrectly, these businesses were getting socked with really insane amounts of fines.

0:14:43

And we changed that through our small business relief package to give businesses the opportunity to cure violations where there was no, significant consumer harm.

0:14:55

So what is the agency's posture in that regard?

Carlos Ortiz

0:14:59

I I think, I think you've hit the nail right on the head in terms of rightsizing, penalties for the type of violation that's occurring.

0:15:07

So I know the e o two legislation that that you champion, chair, was was a key component of that.

0:15:12

Then also on the flip side, making sure that any type of deceptive activity that is really egregious, that the penalty matches that violation as well.

0:15:19

And, for example, I know Andy and I, we worked on a on an update to the consumer protection law in 2021 that updated fines for the first time in fifty years, for the twenty first century.

0:15:31

Also made sure to capture certain online activity, by retail businesses and also made sure to, to take into account language access as well.

0:15:40

So I think I think both of those components are are critical.

0:15:42

One is making sure that right size penalties match the violation and particularly for our small businesses.

0:15:47

We're We're not trying to put small businesses out of business.

0:15:49

We wanna make sure that they're on our communities.

0:15:51

We wanna make sure that they're serving consumers and employing workers.

0:15:54

But on the flip side, when when there are businesses that are engaging in knowing violations and and unconscionable trade practices, that there is a penalty for that that will stop that behavior.

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DCWP's inspection strategy and enforcement approach

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Language access and violation cure opportunities in inspections