New York Attorney General Letitia James has introduced new legislation aimed at protecting consumers and small businesses from a variety of unfair, deceptive, and abusive practices. The proposed law, known as the FAIR Business Practices Act, seeks to enhance New York's consumer protection laws by targeting issues such as deed theft, AI-based schemes, online phishing scams, hard-to-cancel subscriptions, junk fees, data breaches, and other predatory practices.
The legislation is backed by Senator Leroy Comrie and Assemblymember Micah Lasher in the state legislature. It aims to bring New York's consumer protection laws up to par with those of 42 other states that already prohibit unfair business practices. The act would empower the Office of the Attorney General (OAG) and victims to pursue civil penalties and restitution against companies engaging in these harmful activities.
Attorney General James stated: “In New York right now, companies can make canceling a subscription so hard it seems impossible; nursing homeowners can sue relatives of deceased former residents; and debt collectors can steal Social Security benefits.” She emphasized that this legislation would close existing loopholes that allow such practices.
Former FTC Chair Lina Khan expressed support for the initiative: “Strong consumer protection tools are essential for protecting Americans from unfair and abusive business practices.” Similarly, former CFPB Director Rohit Chopra highlighted the need for stronger state laws to protect families and honest businesses from abuses.
Senator Comrie remarked on the necessity of passing this legislation: “When unscrupulous actors take advantage of New Yorkers through online scams, junk fees, and hidden costs, our community and our economy suffer.”
Assemblymember Lasher noted: “Consumer protection equals affordability. Every year billions of hard-earned dollars are extracted from American consumers by companies...that take advantage of us.”
The FAIR Business Practices Act also addresses predatory lending practices affecting small businesses. Eda Henries of Henries & Co. supported the bill due to her clients' experiences with predatory lenders offering high-interest loans with onerous terms.
Richard Barrett shared his experience with an improper mortgage servicer action that he deemed unfair under current laws. Carolyn Carter from the National Consumer Law Center emphasized that New York must strengthen its consumer protections as federal oversight diminishes.
Karen Nicolson from the Center for Elder Law and Justice stressed how weak current laws limit redress for victims of predatory business activities. Ann Marie Cook from Lifespan of Greater Rochester underscored ongoing efforts to educate seniors about scams.
The FAIR Business Practices Act is intended to provide better legal recourse against unfair market conduct in New York State regardless of changes at the federal level.