News Summary
New York legislators are pushing the FAIR Business Practices Act to enhance consumer protection in response to declining federal efforts. The act aims to combat predatory practices like abusive debt collection and misleading loan terms, especially for non-English speakers. With key provisions that modernize outdated laws, the act includes increased penalties for violations and seeks to create a safer marketplace for residents. If enacted, this legislation would be the first major update to consumer protection laws in 45 years, reflecting the urgent need for stronger safeguards against harmful business practices.
New York legislators are advocating for the FAIR Business Practices Act, a new piece of legislation aimed at enhancing consumer protection in the state. The proposal arises amid concerns over declining federal consumer protection efforts and seeks to shield residents from a variety of predatory practices that have become increasingly prevalent.
The FAIR Business Practices Act specifically targets predatory lending, abusive debt collection, junk fees, AI-based schemes, online phishing, hard-to-cancel subscriptions, and data breaches. Sponsored by Senator Leroy Comrie (D-Queens) and Assemblyman Micah Lasher (D-Manhattan), with co-sponsorship from Senator Samra Brouk (D-Rochester), the bill represents a significant shift in New York’s consumer protection landscape.
Currently, the New York Attorney General, Letitia James, has highlighted that the state’s consumer protection laws are outdated when compared to those in 42 other states. The proposed legislation aims to modernize these laws and adapt to the evolving marketplace. Among its key provisions, the bill seeks to prohibit lenders from misleading customers into higher-interest loans and aims to ease the burden of hidden fees and unfair billing practices.
Another critical aspect of the FAIR Business Practices Act is its focus on safeguarding non-English speakers who may be particularly vulnerable to predatory practices. If enacted, the Attorney General would gain the authority to impose civil penalties and restitution on violators. The proposed first-offense penalties would increase significantly, from the existing $50 to $1,000, and allow for “meaningful punitive damages” in instances of severe violations.
This proposed law marks the first update to New York’s consumer protection law in 45 years. It expands the scope of the New York General Business Law § 349 to encompass “unfair” and “abusive” practices. Additionally, it eliminates the “consumer-oriented” doctrine, making it actionable even when practices may not have a broad impact on consumers. These new definitions are designed to bolster protections not only for individuals but also for businesses and non-profits that may fall prey to abusive practices.
Specific examples of abusive practices that the bill seeks to address include the difficulties consumers face in canceling subscriptions, misleading health insurance networks, and the steering of borrowers into costly repayment plans for student loans. Legal experts suggest that this legislation could lead to an increase in consumer protection litigation across the state, providing more opportunities for individuals to seek recourse against unfair practices.
Lawmakers stress that the importance of the FAIR Business Practices Act cannot be overstated, especially given recent federal rollbacks in consumer protections. By grounding the legislation in tougher and more comprehensive guidelines, the aim is to hold businesses accountable and deter them from engaging in deceptive or harmful practices. Enhancements to the civil penalties associated with violations could lead to significant financial consequences for those businesses that violate consumer protection laws.
If the FAIR Business Practices Act is signed into law by Governor Kathy Hochul, it is expected to come into effect 60 days later, marking a substantial shift in how consumer rights are protected in New York. With the goal of creating a safer marketplace for all residents, this legislative effort reflects a growing recognition of the need for stronger safeguards against predatory business practices in the state.
Deeper Dive: News & Info About This Topic
- WilmerHale: New York Legislature Passes FAIR Business Practices Act
- White & Case: New York Poised to Expand Consumer Protection Law
- Consumer Financial Services Law Monitor: Proposed NY FAIR Business Practices Act
- News10: New York Strengthens Consumer Protections with FAIR Act
- Consumer Finance Monitor: NYC Comptroller Calls for Strengthening Consumer Protection Laws
- Wikipedia: Consumer Protection
- Google Search: NEW YORK FAIR BUSINESS PRACTICES ACT
- Google Scholar: FAIR Business Practices Act
- Encyclopedia Britannica: Consumer Rights
- Google News: New York Fair Business Practices Act
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF 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.
