On Thursday, March 13, 2025, New York Attorney General (“NYAG”) Letitia James advanced newly proposed legislation to better protect consumers and small businesses from unfair, deceptive, and abusive practices (“UDAP”). This step by the NYAG is an example of what we expect of attorney generals to take the lead in expanding consumer protection laws in their respective states with the ongoing changes at the Consumer Financial Protection Bureau (“CFPB”).
The proposed legislation, known as the Fostering Affordability and Integrity through Reasonable Business Practices (“FAIR Business Practices Act” or the “Act”), would strengthen New York’s current consumer protection law, General Business Law (“GBL”) Section 349, to protect New Yorkers from a wide array of scams. “At a time when the federal government is making life harder, we want to make life easier for New Yorkers,” said NYAG James in the press release on Thursday. “The FAIR Business Practices Act will close loopholes that make it too easy for New Yorkers to be scammed,” continued NYAG James, “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.”
The FAIR Business Practices Act would significantly extend the current consumer protection laws in New York, targeting not only "deceptive" but also "unfair" and "abusive" business practices. The proposed Act covers all consumers, businesses, and nonprofits across any service in New York, which would allow the attorney general to prosecute entities regardless of their physical location or where the business activity occurs. The Act would enhance current available damages and legal recourse for victims. Individuals would be able to seek up to $1,000 in statutory damages on top of actual damages. For “willful or knowing violations,” it mandates courts to award plaintiffs with attorneys' fees, costs, and treble damages. It further would open the door for class action lawsuits for parties similarly affected by a prohibited act or practice, greatly amplifying the potential for collective redress. Moreover, proposed supplemental civil penalties have been extended beyond just the elderly to incorporate "vulnerable persons," a group that includes minors, seniors, military members, people with disabilities, and non-English speakers. The Act would also create several affirmative defenses. However, notably, compliance with federal rules would no longer offer complete protection under the Act.
Overall, the FAIR Business Practices Act seeks to greatly strengthen protections against unfair business practices in New York during a time when federal protections are uncertain, broadening the scope of who is protected and the actions that can be taken against violators while also specifying conditions under which businesses can defend against such claims.
We will continue to monitor this legislation and other enforcement and legislative trends as states address the consumer protection gaps left by federal agencies under the Trump administration. You can read the full text of the proposed legislation using the following link: https://ag.ny.gov/sites/default/files/2025-03/fostering-affordability-and-legislative-bill-drafting-commission-integrity-through-reasonable-business-practices-fair-business-practices-act-2025.pdf.
