FAIR Business Practices Act Updates New York’s Consumer Protection Law for First Time in 45 Years to Protect Consumers and Small Businesses
NEW YORK – New York Attorney General Letitia James today applauded the passage of legislation to protect consumers and small businesses. The Fostering Affordability and Integrity through Reasonable Business Practices Act, or FAIR Business Practices Act, sponsored by Senator Leroy Comrie and Assemblymember Micah Lasher, and advanced by Attorney General James in March 2025, updates New York’s consumer protection law, GBL §349, for the first time in 45 years. The bill protects New Yorkers from a wide array of common schemes and scams, including artificial intelligence (AI)-based schemes, deed theft, predatory lending, data breaches, and more.
“Too many New Yorkers are being taken advantage of by mortgage servicers charging unnecessary high fees, debt collectors stealing Social Security benefits, and health insurance companies with unfair billing practices,” said Attorney General James. “The FAIR Business Practices Act will close loopholes that make it easy for New Yorkers to be cheated out of their time and hard-earned money. This legislation advanced by Senator Comrie and Assemblymember Lasher will help us protect working families and their wallets from predatory lenders, abusive debt collectors, scammers, and more. I applaud Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie for their support in passing this legislation at a time when the federal government is abandoning its responsibility to protect consumers and small businesses.”
“For too long, New York’s consumer protection laws have lagged behind the fast-moving tactics used to exploit our communities,” said Senator Leroy Comrie. “By updating General Business Law §349, we are giving consumers and small businesses the tools they need to fight back against predatory practices and modern-day scams. I’m proud to have sponsored the FAIR Business Practices Act alongside Attorney General James and Assemblymember Lasher, and I thank my colleagues for recognizing the urgency of protecting New Yorkers in this evolving digital and economic landscape.”
“Since the general business law was enacted in 1970, our entire society has grown dramatically more complicated, and we have seen the complete revolution of commerce,” said Assemblymember Micah Lasher. “In all that time, we have done nothing to modernize our laws to protect New Yorkers from being taken advantage of. That stasis comes to a welcome end with the passage of the FAIR Business Practices Act, a critical step forward to protect New Yorkers, their pocketbooks, and affordability in our great state. I am grateful to Attorney General James and her team for their leadership, and to Senator Comrie for his partnership in passing this long overdue legislation.”
The FAIR Business Practices Act would 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. 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:
- 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.
With the federal government rolling back protections for consumers and small businesses, the FAIR Business Practices Act authorizes OAG to take action to protect vulnerable New Yorkers.
