The Attorney General of New York has introduced proposed legislation that would update state law to protect consumers from unfair and abusive acts or practices in addition to the deceptive practices that have been illegal since the original law went into effect in 1970.
Driving the news: New York Attorney General Letitia James, along with state lawmakers Sen. Leroy Comrie and Assemblymember Micah Lasher, introduced the Fostering Affordability and Integrity through Reasonable (FAIR) Business Practices Act to expand protections for consumers and small businesses.
- The bill would amend New York’s General Business Law (GBL §349) to prohibit unfair and abusive business practices in addition to deceptive ones, aligning the state with 42 other states and federal law that already include such protections.
- The legislation aims to tackle a range of harmful business tactics, including junk fees, deceptive lending practices, unfair debt collection tactics, and predatory subscription models that make cancellations difficult.
- Victims of unfair, deceptive, or abusive practices would be able to take legal action and seek restitution, while the Attorney General’s office would gain broader enforcement authority.
Why it matters: New York is one of only five states that do not have a broad prohibition on unfair or abusive business practices. The current law limits enforcement to deceptive acts only, leaving gaps in consumer protection.
Key provisions of the bill:
- Defines “unfair” and “abusive” acts to include those that cause substantial injury to consumers, interfere with their ability to understand contract terms, or exploit their reliance on businesses.
- Expands legal standing to allow small businesses and nonprofits, in addition to individuals, to take legal action against unfair practices.
- Removes existing court-imposed limitations that required violations to have a broad public impact before enforcement actions could be taken.
- Targets industries with high consumer complaints, including auto lenders, mortgage servicers, healthcare providers, and subscription-based services.
- Strengthens penalties by increasing statutory damages for consumers and imposing higher civil penalties for businesses found in violation.
What they’re saying:
- “In New York right now, companies can make canceling a subscription so hard it seems impossible; nursing home owners can sue relatives of deceased former residents; and debt collectors can seize Social Security benefits. This legislation will put a stop to this.” — Attorney General Letitia James
- “Strong consumer protection tools are essential for tackling exploitative business tactics. This bill is a critical step.” — Former FTC Chair Lina Khan
- “We need stronger state laws to combat abuses that harm families and honest businesses.” — Former CFPB Director Rohit Chopra
What’s next: The FAIR Business Practices Act has been introduced in both the New York Senate and Assembly and is awaiting further legislative action. If passed, the law will take effect 60 days after signing.
