The New York State Legislature has passed the FAIR Business Practices Act, marking the first major update to the state’s consumer protection law (General Business Law 349) in 45 years. The bill was sponsored by Senator Leroy Comrie and Assemblymember Micah Lasher and championed by Attorney General Letitia James.
Details:
- The bill adds “unfair” and “abusive” to the types of business practices prohibited under New York law, previously limited to “deceptive” conduct.
- It authorizes the Attorney General and private individuals to bring enforcement actions over a wider range of misconduct.
- The law will apply to both individuals and small businesses and includes protections for vulnerable groups such as seniors, veterans, and those with limited English proficiency.
- The bill is scheduled to take effect 60 days after becoming law.
Types of conduct the law targets include:
- Debt collectors who take and refuse to return exempt Social Security benefits.
- Student loan servicers that steer borrowers into unnecessarily costly repayment plans.
- Car dealers who withhold customer IDs or charge for unauthorized add-ons.
- Health insurers that provide misleading in-network doctor listings.
- Predatory practices by mortgage servicers, including excessive or unclear fees.
- Companies making subscription cancellations intentionally difficult.
What they’re saying:
- “The FAIR Business Practices Act will close loopholes that make it easy for New Yorkers to be cheated out of their time and hard-earned money,” said Attorney General James.
- “We are giving consumers and small businesses the tools they need to fight back against predatory practices and modern-day scams,” added Sen. Comrie.
- “This long overdue legislation is a critical step forward to protect New Yorkers, their pocketbooks, and affordability in our great state,” said Assemblymember Lasher.
Why it matters: The bill brings New York in line with 42 other states that already prohibit unfair business practices. It removes previous limitations that required actions to be “consumer-oriented” or have a broad public impact to qualify for enforcement.
