The Fostering Affordability and Integrity through Reasonable (FAIR) Business Practices Act Will Strengthen NY’s Consumer Protection Law, Help Lower Costs, Reduce Junk Fees, and Stop Predatory Lenders Legislation Follows Federal Cuts and Weakening of National Consumer Protection Agencies New York Attorney General Letitia James advanced new legislation to protect consumers and small businesses from unfair, deceptive, and abusive practices. The Fostering Affordability and Integrity through Reasonable Business Practices, or FAIR Business Practices Act, is a program bill from the Office of the Attorney General (OAG) and championed in the state legislature by Senator Leroy Comrie and Assemblymember Micah Lasher. This legislation will strengthen New York’s consumer protection law, GBL §349, to protect New Yorkers from a wide array of scams, including deed theft, artificial intelligence (AI)-based schemes, online phishing scams, hard-to-cancel subscriptions, junk fees, data breaches, and other unfair, deceptive, and abusive practices. Forty-two other states and federal law already prohibit unfair practices, making New York’s current law both antiquated and inadequate.
The FAIR Business Practices Act would also help stop lenders, including auto lenders, mortgage servicers, and student loan servicers, from deceptively steering people into higher cost loans. It would reduce unnecessary and hidden fees, stop unfair billing practices by health care companies, and prevent companies from taking advantage of New Yorkers with limited English proficiency. With the federal government rolling back protections for consumers and small businesses, the FAIR Business Practices Act authorizes OAG and victims to seek civil penalties and restitution against businesses that use unfair, deceptive, or abusive practices against vulnerable New Yorkers.
“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,” said Attorney General James. “This legislation will put a stop to this all. At a time when the federal government is making life harder, we want to make life easier for New Yorkers. The FAIR Business Practices Act will close loopholes that make it too easy for New Yorkers to be scammed, and will allow my office to go after anyone who violates the law and look forward to working with my partners in state government to ensure that as Washington retreats from protecting consumers, New York steps up to lead.”
“Strong consumer protection tools are essential for protecting Americans from unfair and abusive business practices,” said former FTC Chair Lina Khan. “At the FTC, we used these tools to tackle a range of exploitative tactics, from outrageous subscription traps and predatory scams to dangerous commercial surveillance. By passing a strong consumer protection bill, New York lawmakers can empower Attorney General James to fully defend New Yorkers' pocketbooks, privacy, and economic freedoms.”
New York’s current consumer protection law, GBL §349, was passed in 1970 and only prohibits deceptive business acts and practices, leaving consumers vulnerable to unfair or abusive acts by companies. The FAIR Business Practices Act will protect New Yorkers from unfair and abusive business acts, such as:
- Companies that make it difficult for consumers to cancel a subscription;
- Student loan servicers that steer borrowers into the most expensive repayment plans;
- Car dealers that refuse to return a customer’s photo ID until a deal is finalized and charge for add-on warranties that the customer did not actually purchase;
- Nursing homes that routinely sue relatives of deceased residents for their unpaid bills despite not having any basis for liability;
- Companies that take advantage of consumers with limited English proficiency and obscure pricing information and fees;
- Debt collectors that collect and refuse to return a senior’s Social Security benefits, even though they are exempt from debt collection; and
- Health insurance companies’ that use long lists of in-network doctors who turn out not to accept the insurance.
On February 9, the Trump administration ordered the Consumer Financial Protection Bureau (CFPB) to stop all work protecting consumers and decline any new cases. The CFPB is an independent agency that oversees big banks, lenders, credit card companies, and mortgage servicers and ensures companies are following federal consumer protection laws. As a result of the Trump administration's actions, the nation's largest banks are no longer being closely watched for compliance with key consumer protections by any federal regulator. The administration’s efforts to destroy the CFPB could also prevent consumers from reporting issues of fraud or deception.
New York Attorney General Letitia James advanced new legislation to protect consumers and small businesses from unfair, deceptive, and abusive practices. The Fostering Affordability and Integrity through Reasonable Business Practices, or FAIR Business Practices Act, is a program bill from the Office of the Attorney General (OAG) and championed in the state legislature by Senator Leroy Comrie and Assemblymember Micah Lasher. This legislation will strengthen New York’s consumer protection law, GBL §349, to protect New Yorkers from a wide array of scams, including deed theft, artificial intelligence (AI)-based schemes, online phishing scams, hard-to-cancel subscriptions, junk fees, data breaches, and other unfair, deceptive, and abusive practices. Forty-two other states and federal law already prohibit unfair practices, making New York’s current law both antiquated and inadequate.
The FAIR Business Practices Act would also help stop lenders, including auto lenders, mortgage servicers, and student loan servicers, from deceptively steering people into higher cost loans. It would reduce unnecessary and hidden fees, stop unfair billing practices by health care companies, and prevent companies from taking advantage of New Yorkers with limited English proficiency. With the federal government rolling back protections for consumers and small businesses, the FAIR Business Practices Act authorizes OAG and victims to seek civil penalties and restitution against businesses that use unfair, deceptive, or abusive practices against vulnerable New Yorkers.
“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,” said Attorney General James. “This legislation will put a stop to this all. At a time when the federal government is making life harder, we want to make life easier for New Yorkers. The FAIR Business Practices Act will close loopholes that make it too easy for New Yorkers to be scammed, and will allow my office to go after anyone who violates the law and look forward to working with my partners in state government to ensure that as Washington retreats from protecting consumers, New York steps up to lead.”
“Strong consumer protection tools are essential for protecting Americans from unfair and abusive business practices,” said former FTC Chair Lina Khan. “At the FTC, we used these tools to tackle a range of exploitative tactics, from outrageous subscription traps and predatory scams to dangerous commercial surveillance. By passing a strong consumer protection bill, New York lawmakers can empower Attorney General James to fully defend New Yorkers' pocketbooks, privacy, and economic freedoms.”
New York’s current consumer protection law, GBL §349, was passed in 1970 and only prohibits deceptive business acts and practices, leaving consumers vulnerable to unfair or abusive acts by companies. The FAIR Business Practices Act will protect New Yorkers from unfair and abusive business acts, such as:
- Companies that make it difficult for consumers to cancel a subscription;
- Student loan servicers that steer borrowers into the most expensive repayment plans;
- Car dealers that refuse to return a customer’s photo ID until a deal is finalized and charge for add-on warranties that the customer did not actually purchase;
- Nursing homes that routinely sue relatives of deceased residents for their unpaid bills despite not having any basis for liability;
- Companies that take advantage of consumers with limited English proficiency and obscure pricing information and fees;
- Debt collectors that collect and refuse to return a senior’s Social Security benefits, even though they are exempt from debt collection; and
- Health insurance companies’ that use long lists of in-network doctors who turn out not to accept the insurance.
On February 9, the Trump administration ordered the Consumer Financial Protection Bureau (CFPB) to stop all work protecting consumers and decline any new cases. The CFPB is an independent agency that oversees big banks, lenders, credit card companies, and mortgage servicers and ensures companies are following federal consumer protection laws. As a result of the Trump administration's actions, the nation's largest banks are no longer being closely watched for compliance with key consumer protections by any federal regulator. The administration’s efforts to destroy the CFPB could also prevent consumers from reporting issues of fraud or deception.
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