Community advocates discussing the impact of the FAIR Business Practices Act in New York City.
New York lawmakers have approved the FAIR Business Practices Act aimed at increasing consumer protections against predatory practices. This significant update to the existing law expands previous regulations and allows for the prohibition of unfair practices, aligning New York with federal standards. Attorney General Letitia James, who championed the bill, highlights its importance in closing loopholes that have allowed exploitation. Despite support from various groups, critics express concerns over changes limiting individual lawsuits and the expanded powers of the attorney general.
New York – New York lawmakers have passed the Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Business Practices Act), designed to enhance protections for consumers and small businesses against predatory practices. This significant legislation updates a state law that has remained unchanged for 45 years and aims to address rising concerns over consumer exploitation in the state.
The bill, filed as S8416/A8427A, expands existing consumer protection provisions under General Business Law §349. It now allows for the prohibition of unfair and abusive practices in addition to the previously banned deceptive acts. If signed by Governor Kathy Hochul, New York will align with 42 other states and federal standards regarding consumer protection.
Attorney General Letitia James, who championed the bill, emphasized that it will close loopholes that permit unfair business practices, enabling New Yorkers to be protected against exploitation. The FAIR Act authorizes the attorney general to take legal action against various entities, including corporations, for unfair treatment as long as their operations involve business within the state. This provision will enable legal action even if the unfair practices do not affect a significant number of consumers.
The new legislation defines “unfair” behavior as actions that cause avoidable harm to consumers or businesses, while “abusive” actions hinder a consumer’s comprehension of product terms or take advantage of vulnerable individuals. The law aims to address various prevalent issues, including AI-based scams, deed theft, predatory lending, hidden fees, and unfair healthcare billing practices that have disproportionately affected non-English speaking communities in New York.
Increasing consumer complaints underscore the urgency of the bill. An analysis indicated a staggering 120% rise in complaints in New York from January to May 2025 compared to the previous year. Additionally, the Federal Trade Commission reported substantial fraud complaints across the state, with senior citizens being heavily targeted by scammers. In 2024, individuals over 60 years old lost over $254 million to fraud, marking a $50 million increase from 2023.
Despite the support the bill received from over 50 community groups, labor unions, and legal organizations, it has faced criticism. Some consumer advocates criticize the removal of the “private right of action” which limits individual lawsuits solely to deceptive practices, rather than encompassing unfair or abusive conduct as well. Critics argue that this limitation weakens the ability of consumers to hold businesses accountable for unfair treatment, leaving New York’s laws less robust compared to measures in neighboring states.
Opponents, including some Republican lawmakers, have expressed concerns regarding the expanded powers granted to the attorney general, fearing that it may lead to excessive lawsuits which could complicate business operations and create a less favorable environment for entrepreneurs in the state.
The passage of the FAIR Business Practices Act reflects heightened concerns about weakened federal consumer protections and aims to address this regulatory gap at the state level. As it stands, Governor Kathy Hochul must sign the legislation for it to become law, with broad implications for consumer protection in New York.
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