Yes, this is really happening.

Via Daily Mail:
Come Tuesday city inspectors will be armed with 17-ounce cups to police New York City Mayor Bloomberg’s controversial new law banning large sodas and other sugary drinks.
The Health Department will begin implementing routine inspections to make sure eateries, including sit down restaurants and fast food chains, are not selling sugary beverages in servings larger than 16 ounces.
Those inspectors will have specially ordered measuring cups to help them enforce the new rule, Deputy Health Commissioner Daniel Kass said in an affidavit recently filed as part of the legal challenge to Bloomberg’s anti-big-soda policy.
‘The measuring cups that we will be issuing … will be able to contain 17 fluid ounces,’ Kass said. Inspectors will issue violations when a cup is found to ‘clearly exceed’ 16 ounces ‘when measured in the inspector’s measuring cup,’ he added.
Bloomberg proposed his oversized sugary beverage ban last May, as a way to squelch unhealthy eating habits in New York.
