NEW YORK – New York Attorney General Letitia James today joined supporters to rally for the passage of the Fostering Affordability and Integrity through Reasonable Business Practices, or FAIR Business Practices Act, a program bill from the Office of the Attorney General (OAG) and sponsored 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 predatory lending, abusive debt collection, junk fees, artificial intelligence (AI)-based schemes, online phishing scams, hard-to-cancel subscriptions, 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.
“As the federal government steps back from protecting consumers and small businesses, New York must step up to help working families and Main Street businesses,” said Attorney General James. “The FAIR Business Practices Act will protect small businesses from predatory lenders, homeowners from bad mortgage servicers, patients from abusive debt collection, and much more. This legislation will strengthen New York’s consumer protection laws to stop businesses from taking advantage of New Yorkers. I look forward to working with my partners in the state legislature to get this legislation passed.”
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.
“New Yorkers deserve to be treated fairly, and this legislation helps ensure that,” said Senator Leroy Comrie. “The FAIR Business Practices Act gives our state stronger tools to hold bad actors accountable and protect everyday people from deceptive and abusive practices. I’m proud to sponsor this bill alongside Attorney General James and Assemblymember Lasher as we work to strengthen consumer protections and support small businesses across our state.”
“New York has one of the weakest consumer protection laws in the country. Donald Trump and Elon Musk are taking a hatchet to federal consumer protections, leaving New Yorkers even more vulnerable to abuse. The time to act is now,” said Assemblymember Micah Lasher. “Making sure that the Attorney General has the tools she needs to look out for New Yorkers is one of the best ways we can stop the damage Trump is trying to do. We must pass this bill this session to protect consumers from the high costs of unfair business practices. It is an honor to stand together in this fight with Attorney General James and Senator Comrie. Let’s get this done.”
“We applaud Attorney General James for developing the FAIR Business Practices Act and we thank Assemblymember Lasher for introducing this bill,” said Mario Cilento, President of the New York State AFL-CIO. “The NYS AFL-CIO strongly supports modernizing the state’s consumer protection laws, particularly because of rollbacks at the federal level, but also to address technological, legal, and other developments that have made our current laws less effective. This bill, which will improve the rights and protections of workers who have been victims of various fraudulent and unfair practices, including unreasonable terms and conditions for payday loans or payroll check-cashing schemes, is a crucial step towards a fairer and more just society.”
“The FAIR Business Practices Act will protect working families from abusive business practices that are making it hard for people to get a car, keep a roof over their heads, and put food on the table,” said Henry Garrido, Executive Director of American Federation of State, County and Municipal Employees, DC37. “Right now the federal government is stepping away from enforcing consumer protection laws that protect everyday people. I applaud Attorney General James, Senator Comrie, and Assemblymember Lasher for advancing this legislation to protect working families, small businesses, seniors, and much more. Let’s pass the FAIR Business Practices Act by the end of this session.”
“AARP New York thanks Attorney General James, Senator Comrie, and Assemblymember Lasher for their leadership on this legislation,” said Kristen McManus, Senior Associate State Director for Advocacy for AARP New York. “Scammers are targeting older adults more than ever, with the FBI reporting that New Yorkers 60 and older lost more than $254 million to fraud in 2024, a more than $50 million increase from the previous year. Now is the time for the Governor and legislature to step up for all New Yorkers by establishing a consumer protection law that will foil scammers and discourage con artists from targeting some of the most vulnerable among us.”
“Where New York was once a leader in protecting small businesses from bad loans, our neighboring states have all since passed laws to stop unfair, abusive, and deceptive behavior,” said Lindsey Vigoda, New York Director of Small Business Majority. “We cannot continue to fall behind on these common-sense protections, which is why New York must pass the FAIR Business Practices Act. This legislation would shield Main Street from abusive fees that all too often place enormous strain on small businesses. With predatory lending products more prevalent today than ever, it’s time for New York to step up once again and defend our most precious asset — our small business community.”
“In response to the Trump administration’s gutting of federal consumer protection agencies and financial regulators, states must step up to stop big businesses from ripping off working families,” said Winston Berkman-Breen, Legal Director at the Student Borrower Protection Center. “This is especially true in New York, where abusive student loan servicers and private student loan companies take advantage of our weak consumer protections and prey on low-income households and vulnerable communities seeking to achieve financial stability through higher education. We applaud Attorney General James, Senator Comrie, and Assemblymember Lasher for meeting this moment by introducing the FAIR Business Practices Act. The bill will finally catch New York up with the rest of the country by providing commonsense and timely consumer protections for households and small businesses.”
“The FAIR Business Practices Act strengthens New York’s core consumer protection law to ensure it is up to date and serves as an effective deterrent against wrongdoing,” said Chuck Bell, Advocacy Programs Director for Consumer Reports. “At a time when federal consumer protection initiatives are under attack, New York is stepping up to ensure consumers and small businesses will have the protections they need and deserve against financial ripoffs, fraud, and scams in the marketplace.”
“Every New Yorker should be able to work and invest in a prosperous future without fearing predatory lenders pulling the carpet out from under them,” said Diana Caba, Vice President for Community and Economic Development, Hispanic Federation. “It is deeply concerning how few protections consumers have in New York and how those protections are becoming even more limited because of the weakening of regulatory bodies at a national level. The FAIR Business Practices Act shows that New York is prioritizing the financial well-being of New Yorkers and catching state regulations up with the 42 other states who recognize why states must protect people's financial future.”
“New York's bedrock consumer protection law is intended to protect New Yorkers from new and evolving scams across all economic activity, but in practice it has fallen short, leaving gaps where scam victims have no recourse to get their money back, while making it profitable to continue abusing people,” said Ariana Lindermayer, Senior Staff Attorney of Mobilization for Justice. “The FAIR Business Practices Act would close these gaps and catch New York up with the 42 states that already ban unfair business practices. Honest businesses and everyday New Yorkers will welcome real protection from predatory businesses and competitors.”
“The FAIR Business Practices Act should be uncontroversial,” said Matthew Parham, Director of Litigation and Advocacy at the Western New York Law Center in Buffalo. “The unfair and abusive practices that it addresses are already illegal. It just does what most states have done for decades: lets individual consumers and state regulators enforce these rights, instead of relying on the federal government. This is vitally important now, when the federal government is completely abdicating its responsibility to protect consumers from scams and ripoffs.”