As the federal government retreats from enforcing key consumer protections, New York is stepping up to fill the void. On May 21, 2025, Attorney General Letitia James announced the introduction of the Fostering Affordability and Integrity through Reasonable Business Practices Act—more succinctly, the FAIR Business Practices Act—a bold legislative initiative that aims to modernize New York’s outdated consumer protection laws and better defend working families, small businesses, and vulnerable populations against deceptive and abusive practices.
For decades, New York’s consumer protection statute, General Business Law § 349, has lagged behind that of other states, offering limited avenues for consumers and the state to challenge unfair or abusive conduct in the marketplace. Today, forty-two states and federal law explicitly prohibit unfair business practices, leaving New York as an outlier in critical areas of financial and consumer protection. The FAIR Business Practices Act seeks to remedy that.
Spearheaded by Attorney General James and sponsored by Senator Leroy Comrie and Assemblymember Micah Lasher, the legislation would vastly expand the Attorney General’s enforcement tools and consumers’ rights. The bill introduces explicit prohibitions on unfair, deceptive, and abusive business practices—empowering both regulators and individuals to seek civil penalties and restitution.
“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.”
The Act addresses pressing issues facing New Yorkers today. It targets junk fees, hard-to-cancel subscriptions, deceptive steering into higher-cost loans, artificial intelligence-driven scams, and phishing schemes—threats that have proliferated as technology advances and federal oversight recedes. In addition, it offers stronger protections for individuals with limited English proficiency and older adults, a group that saw over $254 million in fraud losses in 2024 alone, according to FBI data.
Importantly, the bill also seeks to crack down on financial predators in the student loan, auto lending, and mortgage servicing industries. These sectors have been especially problematic in New York, where lax enforcement and outdated laws have left borrowers vulnerable to opaque terms and abusive collections.
“In response to the Trump administration’s gutting of federal consumer protection agencies and financial regulators, states must step up,” said Winston Berkman-Breen of the Student Borrower Protection Center. “This bill will finally catch New York up with the rest of the country.”
The FAIR Business Practices Act has garnered broad support from labor unions, legal advocates, small business coalitions, and consumer rights groups. Organizations like the NYS AFL-CIO, Consumer Reports, AARP, and the Hispanic Federation all hailed the legislation as a necessary corrective measure in an era where consumer fraud is on the rise and accountability is lacking.
“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.”
By giving consumers and the Attorney General’s office the power to directly address unfairness in the marketplace, the Act would create stronger incentives for businesses to operate transparently and ethically—ultimately leveling the playing field for legitimate actors and helping rebuild trust in the marketplace.
This legislative effort is not only as a step forward in consumer protection, it is a critical development for businesses navigating a rapidly evolving regulatory landscape. Small businesses and entrepreneurs often find themselves at the mercy of larger financial institutions and technology vendors whose practices may obscure risks and inflate costs. The FAIR Business Practices Act empowers those on the frontlines—both consumers and honest businesses—to stand up to deceptive actors and ensure fair dealing across sectors.
As regulatory frameworks continue to shift, having counsel that understands both the legislative intent and operational implications of new laws is vital. Whether you are evaluating your compliance protocols, renegotiating vendor agreements, or responding to government inquiries, our firm provides comprehensive legal guidance tailored to your needs.
At Outside Legal Counsel LLP, we specialize in helping clients navigate complex regulatory environments and protect their interests in a changing legal landscape. Contact us today to learn how we can help you align your business practices with New York’s evolving standards—and lead with integrity in an era of accountability.
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