Merchants filed a lawsuit on Monday in the State Supreme Court in Manhattan. This measure was brought on behalf of the Multicultural Business Coalition (MBC), an organization recently established six months ago that represents fifty chambers of commerce belonging to different ethnic groups.
The merchants, who own small businesses, allege that Mamdani is violating both New York's Civil Rights Law and the state constitution because the construction of these supermarkets constitutes discrimination.
According to the judicial document analyzed by the EFE agency, the municipal supermarkets are allegedly denying equal protection to the participants in the class action—which include hundreds of merchants, many of them small entrepreneurs—by preventing them from offering discounts that significantly deviate from globalized trade practices, which would violate New York's civil rights laws.
Since Mamdani, associated with the left wing of the Democratic Party, announced his intention to establish these municipal supermarkets, the merchants have opposed the proposal. They argue that tax money is being used to compete directly with their own businesses, and that the opening of these stores would force many to close down.
In July, the mayor had also announced that the five supermarkets, planned to operate fully by 2029, would offer a 30% discount on essential food items in response to rising food costs in the state.
In the legal petition, the merchants use civil rights law as the basis to sue government authorities, whether local or state, if they violate an individual's constitutional rights while performing their duties.
Additionally, they argued before the court that the stores are being implemented without a prior impact study. The merchants also referenced the fact that permission for the Walmart retail chain to open in the city was denied for several years due to the harm it would cause to small businesses, citing this same justification in their opposition to the supermarkets, as highlighted to EFE by the MBC board president, Frank García.
Frank García informed EFE that before filing the lawsuit, they had requested a meeting with the Mayor of New York, but this attempt was unsuccessful. However, Mamdani held meetings with the supermarket association, as well as other entities from the Latino community and Arab merchants.
Through this legal process, the merchants seek to initiate a dialogue with the municipal judge to find a resolution that does not harm their businesses.