New York City, December 29, 2025
On December 19, 2025, Governor Kathy Hochul signed the FAIR Business Practices Act into law, enhancing consumer protections in New York by prohibiting unfair and abusive business practices. This legislation significantly updates the state’s consumer protection framework, increasing penalties for violations and extending protections to a wider range of commercial activities. The Act responds to evolving business practices and aims to create a fairer marketplace for consumers and small businesses in New York.
New York State Enacts Historic Consumer Protection Bill
New York City, NY – On December 19, 2025, Governor Kathy Hochul signed the Fostering Affordability and Integrity Through Reasonable Business Practices Act (FAIR Business Practices Act) into law, marking a significant update to New York’s consumer protection framework. This legislation amends General Business Law (GBL) §349, broadening its scope to include “unfair” and “abusive” business practices alongside “deceptive” acts, thereby enhancing protections for consumers and small businesses across the state.
Key Provisions of the FAIR Business Practices Act
- Expanded Definition of Prohibited Practices: The Act now prohibits “unfair” and “abusive” business acts or practices, in addition to “deceptive” practices, aligning New York’s laws with those of 42 other states that already encompass these categories. This expansion addresses a range of harmful business behaviors, including predatory lending, deceptive billing, and unfair debt collection practices.
- Enhanced Enforcement and Penalties: The legislation increases the maximum civil penalty for violations from $50 to $1,000 per violation, plus actual damages. Additional damages may be awarded if the defendant is found to have “willfully or knowingly” violated the Act. This change aims to deter businesses from engaging in unfair practices and provides greater restitution for affected consumers.
- Broader Applicability: The Act extends the reach of GBL §349 to cover a wider array of commercial activities, including mortgage lending, debt collection, and online transactions. This ensures that more consumers are protected from a variety of unfair business practices.
Background and Legislative Process
The FAIR Business Practices Act was introduced in March 2025 by Attorney General Letitia James, with sponsorship from Senator Leroy Comrie and Assemblymember Micah Lasher. The legislation passed the New York State Legislature on June 18, 2025, and was signed into law by Governor Hochul in December 2025. This marks the first significant update to New York’s consumer protection laws in 45 years, addressing the evolving landscape of business practices and consumer needs.
Implications for Consumers and Businesses
For consumers, the Act provides stronger safeguards against a range of unfair and deceptive business practices, including predatory lending, deceptive billing, and unfair debt collection. It also offers enhanced avenues for seeking redress and restitution. For businesses, the Act underscores the importance of compliance with consumer protection laws and the need to adopt fair and transparent business practices to avoid substantial penalties.
Conclusion
The enactment of the FAIR Business Practices Act represents a pivotal advancement in consumer protection within New York State. By expanding the scope of GBL §349 to include unfair and abusive practices, the legislation provides a more robust framework for safeguarding consumers and small businesses against a broader spectrum of harmful business behaviors. Entrepreneurs and business leaders should remain vigilant and proactive in adapting their practices to comply with this new law to foster a thriving economic environment that benefits everyone involved.
FAQ
What is the FAIR Business Practices Act?
The FAIR Business Practices Act is a law signed by Governor Kathy Hochul on December 19, 2025, that amends New York’s General Business Law §349 to prohibit “unfair” and “abusive” business practices, in addition to “deceptive” acts, thereby enhancing consumer and small business protections.
What does the Act prohibit?
The Act prohibits “unfair” and “abusive” business acts or practices, in addition to “deceptive” practices, covering a range of harmful business behaviors such as predatory lending, deceptive billing, and unfair debt collection practices.
What are the penalties for violating the Act?
The Act increases the maximum civil penalty for violations from $50 to $1,000 per violation, plus actual damages. Additional damages may be awarded if the defendant is found to have “willfully or knowingly” violated the Act.
When did the Act become law?
The Act was signed into law by Governor Kathy Hochul on December 19, 2025, following its passage by the New York State Legislature on June 18, 2025.
How does the Act affect consumers?
The Act provides consumers with stronger safeguards against a range of unfair and deceptive business practices, including predatory lending, deceptive billing, and unfair debt collection, and offers enhanced avenues for seeking redress and restitution.
How does the Act affect businesses?
The Act underscores the importance of compliance with consumer protection laws and the need for businesses to adopt fair and transparent practices to avoid substantial penalties.
Key Features of the FAIR Business Practices Act
| Feature | Description |
|---|---|
| Expanded Prohibited Practices | Includes “unfair” and “abusive” business acts alongside “deceptive” practices. |
| Enhanced Penalties | Increases civil penalties to $1,000 per violation, plus actual damages; additional damages for willful violations. |
| Broader Applicability | Extends coverage to more commercial activities, including mortgage lending, debt collection, and online transactions. |
Now Happening on X
- @NewYorkStateAG (December 20, 2025): The FAIR Business Practices Act is updating New York consumer protection laws for the first time in 45 years, allowing the AG’s office to protect consumers and small businesses from unfair practices and lower costs for New Yorkers. View on X
- @MicahLasher (December 23, 2025): The FAIR Business Practices Act expands NY’s consumer protection laws for the first time in 45 years, giving the AG power to target unfair and abusive business practices amid federal threats to the CFPB. View on X
- @NYSenDems (December 23, 2025): Sponsored by Senator Leroy Comrie, the FAIR Business Practices Act targets predatory lending, junk fees, abusive debt collection, and misleading billing, strengthening protections for small businesses and consumers with limited English proficiency. View on X
- @nick_garber (December 22, 2025): New legal authorities under the FAIR Business Practices Act and the city’s consumer protection law ban deceptive and unconscionable practices, potentially expanding enforcement options. View on X
- @CFPB_Watch (December 26, 2025): New York enacts the FAIR Business Practices Act, expanding the state consumer protection law. View on X
- @NatLawGlobal (December 28, 2025): New York State enacts historic consumer protection bill expanding the scope of GBL 349. View on X
Deeper Dive: News & Info About This Topic
HERE Resources
Advancing New York’s Economy through AI-Driven Regulation
Mayor-Elect Mamdani Partners with Khan to Reduce NYC Living Costs
Instacart Challenges New York City’s Delivery Worker Laws
U.S. Economy Records 4.3% Growth in Q3
New York Enacts Landmark Consumer Protection Law
Fast Food Just Cause Law Boosts NYC Employment and Growth
New York AG Sues UPS Over Underpayment of Seasonal Workers
Governor Hochul’s Crucial Decision on AI Legislation Approaches
New York Enacts Law for AI Performer Disclosure in Advertising
DoorDash and Uber Eats Challenge New York City’s Tipping Law
Author: STAFF HERE NEW YORK WRITER
The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
