New York Lawmakers Amend Consumer Protection Bill Amid Business Concerns

News Summary

New York lawmakers are amending the FAIR Business Practices Act following pushback from business leaders wary of unintended consequences. The bill seeks to curb deceptive practices by lenders and debt collectors while enhancing protections for consumers, including small businesses. Business groups fear the vague definitions might lead to financial burdens from lawsuits. Attorney General Letitia James emphasizes the need for these reforms to safeguard consumers and small businesses against predatory practices, as discussions continue amidst time constraints in the legislative session.

New York – New York lawmakers have decided to amend a consumer protection bill amid significant pushback from business leaders. The legislation, named the Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Business Practices Act), aims to prohibit “unfair” and “abusive” business practices, particularly targeting deceptive behaviors by predatory lenders and debt collectors. The Attorney General’s office would receive greater authority to combat these issues, similar to laws in 23 other states.

The Business Council of New York State has been in discussions with the Attorney General’s office for several weeks, voicing concerns that the bill could have unintended negative consequences for small businesses. Business organizations believe that the legislation may expose small businesses to unsubstantiated lawsuits from third parties, potentially leading to financial hardships.

Despite proposed amendments intended to address these concerns, skepticism persists among business leaders. The National Federation of Independent Business has expressed alarm over vague definitions within the bill, which they argue may impose significant financial burdens on small business owners. Critics fear that the legislation could encourage private lawyers to pursue legal action against small businesses lacking the resources to provide a legal defense.

In response to the opposition, Attorney General Letitia James has asserted that the reforms are crucial for protecting consumers from scams and abusive practices. She further highlighted that small businesses can also be victims of predatory lending and deserve protection under the law.

Support for the FAIR Business Practices Act does exist among certain small business advocacy groups, who argue that safe lending options have diminished over time and that consumers require stronger protections against exploitation.

Assembly member Micah Lasher, the main sponsor of the bill, has indicated that the proposed amendments aim to strike a balance between assuaging business concerns and maintaining sufficient consumer protections. However, the urgency for the legislation’s passage is compounded by time constraints in the legislative session, with James urging prompt action.

Previously, during the last legislative session, consumer protection reforms proposed by Governor Kathy Hochul was unable to move forward due to unsuccessful negotiations. In light of the current session’s challenges, the Assembly’s end date has been extended from June 12 to June 17, allowing more time for deliberation on this and other pending legislation.

In addition to the consumer protection bill, another major piece of legislation—the Affordable Waste Reduction Act—faces opposition from business groups. The act proposes an extended producer responsibility (EPR) framework that aims to reduce waste without imposing stringent regulations that could hinder business practices. This proposal has received backing from industry leaders. However, it continues to face skepticism from environmentalists and some lawmakers, indicating a contentious atmosphere surrounding legislative efforts in the state.

As discussions continue, to incorporate the concerns of all parties involved, New York lawmakers are navigating a complex landscape of consumer protection, business interests, and environmental regulations. The outcome of the FAIR Business Practices Act and the Affordable Waste Reduction Act remains to be seen as the extended legislative session progresses.

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