FAIR Business Practices Act introduced: How it could help NY consumers, small businesses

Yahoo

17-03-2025

New York state officials are pushing for additional state-level protections for consumers and small businesses as federal protections face challenges from the Trump administration.
New York Attorney General Letitia James, alongside Senator Leroy Comrie and Assemblymember Micah Lasher, announced the advancement of the Fostering Affordability and Integrity through Reasonable Business Practices, or FAIR Business Practices Act, on Thursday, which aims to protect consumers and small businesses from unfair, deceptive and abusive practices.
'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,' James said. '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."
Here's what to know about the proposed legislation.
If passed, the FAIR Business Practices Act would allow the AG's Office and individuals impacted by unfair, deceptive or abusive practices to bring a civil case seeking penalties and restitution against those who engage in them, the AG's Office says.
The act would protect New Yorkers from the following:
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.
Health insurance companies that use long lists of in-network doctors who turn out not to accept the insurance.
"Every single day we hear from older adults who have been victims of scams,' says Lifespan of Greater Rochester president and CEO Ann Marie Cook. 'Scams are serious crimes that, at a minimum, disrupt a person's life and usually impact their financial future for a long time ... I want to sincerely thank Attorney General Letitia James for her leadership on this issue and for protecting all consumers from deceptive practices.'
On Feb. 1, the Trump administration fired CFPB Director Rohit Chopra and appointed Office of Management and Budget director Russel Vought as the acting director of the agency who immediately ordered the CFPB to stop its work and said he would decline additional funding for the agency, USA TODAY reported.
The shut down launched protests and a federal lawsuit by the National Treasury Employees Union, which represents CFPB staff, Reuters said, arguing Vought's actions violated the Constitution by undercutting Congress' power to set and fund the agency's mission.
Fighting back: New York joins over 20 other states to argue against shuttering CFPB
However, the Trump administration agreed to pause layoffs and funding cuts at the CFPB on Feb. 21, USA TODAY reported. In the order by U.S. District Judge Amy Berman Jackson, the Trump administration 'shall not delete, destroy, remove, or impair any data or other CFPB records,' except as permitted by federal law until at least March 3, the date of the next court hearing.
'It is further ordered that Defendants shall not terminate any CFPB employee, except for cause,' the order states.
New York has since joined over 20 other states in supporting two lawsuits against the shuttering of the CFPB, filing an amicus brief in the U.S. District Court for the District of Maryland and another in the U.S. District Court for the District of Columbia in February arguing consumers would face "significant harm" if the CFPB were dismantled.
On Thursday, James said the CFPB's shut down could prevent consumers from reporting issues of fraud or deception.
What it could mean for you: Consumer Financial Protection Bureau ordered to stop work
The legislation has been introduced in both the state Senate and Assembly and James "will work to have it advanced and signed into law so New York consumers are better protected regardless of what happens on the federal level."
Emily Barnes reports on consumer-related issues for the USA TODAY Network's New York Connect Team, focusing on scam and recall-related topics. Follow her on X and Instagram @byemilybarnes. Get in touch at [e-mail].
This article originally appeared on Rochester Democrat and Chronicle: FAIR Business Practices Act introduced: How it could help NY consumers