Tish James' pro-consumer push could spark 'legal shakedowns' and boost greedy lawyers, businesses say
New York business groups are blasting Attorney General Tish James for a pro-consumer push they fear would be a legislative misfire – boosting greedy lawyers and unleashing 'legal shakedowns.'
James' FAIR Business Practices Act looks to tighten up consumer protections to crack down on shady crimes like deed theft, junk fees and hard-to-cancel subscriptions but critics said it will open up small businesses to frivolous lawsuits and legal threats.
'The so-called FAIR Act would be anything but fair to New York's business community, especially Main Street businesses,' said Tom Stebbins, executive director of the Lawsuit Reform Alliance of NY.
Advertisement
3 Attorney General Letitia James makes an announcement about new legislation to protect consumers and small businesses at AG office in New York on March 13, 2025.
Lev Radin/ZUMA Press Wire / SplashNews.com
'It strips away long standing legal safeguards and due process protections – like ensuring that claims are consumer-oriented or that plaintiffs actually have standing to sue – and replaces them with a system that invites abuse,' Stebbins added.
'The bill would specifically authorize profit-motivated law firms to send letters demanding pre-suit settlements for damages and fees,' Stebbins said. 'That's a recipe for a cottage industry of legal shakedowns, where small businesses are targeted not for wrongdoing, but because they lack the resources to fight back.'
Advertisement
The act targets companies engaged in artificial intelligence-based schemes, online phishing scams and data breaches.
It also takes aim at student loan services that steer borrowers into more expensive repayment plans, unscrupulous car dealers, shady nursing homes that sue relatives of deceased residents for unpaid bills — and health insurance companies that use long lists of in-network doctors who turn out not to accept patients' insurance.
But business advocates worry it'll have an unintended burden on small businesses, citing a study claiming 'excess tort costs' already saddle New Yorkers with $61.8 billion in unnecessary legal bills.
3 The entrance to the Consumer Financial Protection Bureau (CFPB) headquarters is seen during a protest on February 10, 2025 in Washington, DC.
Getty Images
Advertisement
Ashley Ranslow, New York State Director for the National Federation of Independent Businesses, said James' proposal 'would make it easier for lawyers to shake down small businesses with vague legal threats.
'Lawmakers should be focused on cutting costs and supporting small businesses, not making it easier for wealthy lawyers who have demonstrated no actual harm to sue them out of existence,' she said.
Justin Wilcox, executive director of Upstate United, said the bill has 'vague definitions' that lawyers will exploit for profit, not justice.
Advertisement
Business Council lobbyist Chelsea Lemon said Gov. Kathy Hochul and lawmakers need to reject the bill if they are 'truly serious about addressing affordability.'
James had no immediate comment to backlash from business interests.
But during a press conference in March, she said the legislation was necessary while criticizing the Trump administration.
'At a time when the federal government is making life harder, we want to make life easier for New Yorkers,' James said.
'The FAIR Business Practices Act will close loopholes that make it too easy for New Yorkers to be scammed, 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.'
3 During a press conference in March, James said the legislation was necessary while criticizing the Trump administration.
Pixsooz – stock.adobe.com
Her office on Sunday provided statements from the Student Borrower Protection Center and the Small Business Majority who support the FAIR Act.
James has been in the political and legal fire herself of late.
Advertisement
Trump's Justice Department last week launched a criminal probe into mortgage fraud claims against her.
Taxpayers also could be on the hook for legal bills from the investigation into her real estate dealings, according to the state budget.
James dismissed the allegations as 'baseless' and claimed the federal probe was part of a 'revenge tour' by the president because she brought civil fraud charges against him and his company, the Trump Organization.
James famously professed, 'no one is above the law,' when she launched her investigation into Trump in 2019 — which ended with a $454 million judgment against him and his real estate firm.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
8 hours ago
- New York Post
ADL says it's not aware of Stringer's plan to work with group to combat antisemitism despite mayoral candidate's claim
Longshot Big Apple mayoral candidate Scott Stringer's claim that he'd work with the Anti-Defamation League to root out antisemitism is news to the non-profit. An ADL spokesperson said Sunday that the organization is not aware of 'any authorized plans' to work with the former city comptroller, who said over the weekend he would use tech to help cops 'predict and prevent' biased attacks while referencing the ADL. Stringer unveiled his plan to fight Jewish hate over the weekend. Leonardo Munoz 'We are not aware of any authorized plans to partner with Mr. Stringer and, as a nonprofit organization, we would not partner with any candidate for elective office,' the spokesperson told The Post. The statement comes after Stringer told members of Congregation Kehilath Jeshurun synagogue on Manhattan's Upper East Side he would have the NYPD and Office of Emergency Management use 'advanced monitoring tools' to flag social media posts that incite violence or signal threats during and after an international emergency. The ADL Center on Extremism uses a 'first-of-its-kind' interactive map that allows users to detail specific incidents of hate, extremism, antisemitism and terrorism by state and across the country. A spokesperson for Stringer claimed the pol was only promoting the ADL's resources when asked about the claimed partnership. The ADL said it was not aware of the plan Stringer wants to partner with them on. Michael Nagle 'The ADL has one of the best tools available, and this one has been widely cited by Jewish thought leaders and elected officials,' the spokesperson said in a statement. 'It's been broadly promoted and positioned as a best practice. We should use the best tools and resources available to fight antisemitism — especially from groups that have long led the way on this issue. 'Employing best practices is good leadership, not an implication of a formal campaign partnership. The ADL has welcomed others promoting their resources.' Jewish New Yorkers have faced a disturbing spike in hate since Hamas launched its Oct. 7, 2023 attack on Israel, leading to the war in Gaza. Stringer, who is Jewish and a Zionist, has been polling in the single digits with the Democratic primary for mayor just weeks away.
Yahoo
11 hours ago
- Yahoo
DMV Scam Texts Target Multiple States. What You Must Know
A person prepares to enter a New York State DMV on April 28, 2025 in New York City. Credit - Michael M. Santiago—2025 Getty Images Authorities and Department of Motor Vehicles offices (DMVs) officials across multiple U.S. states have released advisories to their citizens to look out for scam texts that are attempting to manipulate drivers into paying a fake 'outstanding toll.' The prevalence of the text scams ramped up throughout May, leading to various states issuing warnings and advice, ultimately telling members of the public to watch out for messages claiming to be from the DMV. 'These scammers flood phones with these texts, hoping to trick unsuspecting New Yorkers into handing over their personal information,' said New York DMV Commissioner Mark J.F. Schroeder in an press release. 'DMV will not send you texts asking for your personal information.' Here's what you need to know about the DMV scam texts and how you can best protect yourself: The spam texts have spanned across the United States, with Illinois, New York, Virginia, Pennsylvania, Florida, New Jersey, Georgia, Colorado, Vermont, Texas, and California among the states that have issued alerts. Though their advisories differ, all authority boards have made clear that the DMV does not, and will not, send customers unsolicited requests for payments and personal information. In Illinois, Secretary of State Alexander Giannoulias issued a stark warning, stating that the Illinois DMV will only send out text messages for appointment reminders. 'Phishing scams are unfortunately an increasingly prevalent threat in our modern society, seeking to cheat Illinoisans out of their personal information and hard-earned money,' Giannoulias said. In Florida, the state DMV has created a webpage to alert drivers about the scam, reminding locals that the FLDMV 'will never contact you via text message demanding payment or threatening suspension or arrest.' Some local police and civic associations in states like New York and New Jersey have posted warnings across social media, too. The Warren Township Police Department in New Jersey shared a notice on Facebook on May 31, alerting locals of the 'recent increase' in the scam texts. According to screenshot examples placed on government websites, the texts vary state-by-state, but they tend to include a warning that if the recipient does not pay an outstanding traffic ticket, they will encounter a penalty. Recipients are told they could lose their vehicle registration or driving privileges, potentially see a toll booth charge increase, see their credit score impacted, or even risk prosecution. Some of the websites—the "click here" links—listed in the text messages include terms mirroring '.gov' in an effort to appear legitimate. In New Jersey, many of the scam messages have included links involving variations of "ezpassnj." 'New Jersey State Department of Motor Vehicles (DMV). Final Notice: Enforcement Penalties Begin on May 30,' one spam text circulating New Jersey stated, according to a screenshot shared in a warning by the City of Linden. The scam message continued: 'Our records show that as of today, you still have an outstanding traffic ticket… Please pay immediately before enforcement to avoid license dispensation and further legal disputes.' The Federal Trade Commission (FTC) has a website with consumer advice, which suggests various steps people can take to protect themselves from text message scams. First, those who receive the text can copy the message and forward it to 7726 (SPAM), which could allow your provider to 'block similar messages in the future.' People can also report it to the FTC directly on the government website. In general, the DMVs of these multiple states advise their citizens to be cautious of all communications they receive, even if those messages come from claimed 'trusted sources,' and to never send personal and sensitive information via text or email. In its public notice, the Warren Township Police Department advised recipients of the text scam to follow four key steps: Delete the message immediately Do NOT click any links or provide any information Report the scam to the Federal Trade Commission at If you're unsure about your DMV status, visit the official DMV website directly or contact them by phone Generally speaking, scammers are known for creating a sense of urgency, often giving a deadline or listing serious consequences—such as the loss of driving privileges, in this case—in order to prompt a swift response from victims. David Brumley, a professor of electrical and computer engineering at Carnegie Mellon University, told TIME in 2024 that the best way to protect yourself from scams is to be alert and, if you are unsure if a text is legitimate, call the department or business directly to confirm, before taking any further action. Murat Kantarcioglu, a professor of computer science at Virginia Tech, told TIME earlier this year that people should also make sure they are informing their older relatives of any prevalent scams, as they may be less tech-savvy and more vulnerable. 'I think everyone should make it their mission to educate the older people in their family about these issues,' said Kantarcioglu, adding that it's best not to answer text messages from unverified senders or engage in phone conversations with people you don't know. Contact us at letters@
Time Magazine
12 hours ago
- Time Magazine
Authorities Issue Warnings Over Multistate DMV Scam Texts. Here's What to Look Out For
Authorities and Department of Motor Vehicles offices (DMVs) officials across multiple U.S. states have released advisories to their citizens to look out for scam texts that are attempting to manipulate drivers into paying a fake 'outstanding toll.' The prevalence of the text scams ramped up throughout May, leading to various states issuing warnings and advice, ultimately telling members of the public to watch out for messages claiming to be from the DMV. 'These scammers flood phones with these texts, hoping to trick unsuspecting New Yorkers into handing over their personal information,' said New York DMV Commissioner Mark J.F. Schroeder in an press release. 'DMV will not send you texts asking for your personal information.' Here's what you need to know about the DMV scam texts and how you can best protect yourself: What states have been affected? The spam texts have spanned across the United States, with Illinois, New York, Virginia, Pennsylvania, Florida, New Jersey, Georgia, Colorado, Vermont, Texas, and California among the states that have issued alerts. Though their advisories differ, all authority boards have made clear that the DMV does not, and will not, send customers unsolicited requests for payments and personal information. In Illinois, Secretary of State Alexander Giannoulias issued a stark warning, stating that the Illinois DMV will only send out text messages for appointment reminders. 'Phishing scams are unfortunately an increasingly prevalent threat in our modern society, seeking to cheat Illinoisans out of their personal information and hard-earned money,' Giannoulias said. In Florida, the state DMV has created a webpage to alert drivers about the scam, reminding locals that the FLDMV 'will never contact you via text message demanding payment or threatening suspension or arrest.' Some local police and civic associations in states like New York and New Jersey have posted warnings across social media, too. The Warren Township Police Department in New Jersey shared a notice on Facebook on May 31, alerting locals of the 'recent increase' in the scam texts. What are the DMV scam texts saying? According to screenshot examples placed on government websites, the texts vary state-by-state, but they tend to include a warning that if the recipient does not pay an outstanding traffic ticket, they will encounter a penalty. Recipients are told they could lose their vehicle registration or driving privileges, potentially see a toll booth charge increase, see their credit score impacted, or even risk prosecution. Some of the websites—the "click here" links—listed in the text messages include terms mirroring '.gov' in an effort to appear legitimate. In New Jersey, many of the scam messages have included links involving variations of "ezpassnj." 'New Jersey State Department of Motor Vehicles (DMV). Final Notice: Enforcement Penalties Begin on May 30,' one spam text circulating New Jersey stated, according to a screenshot shared in a warning by the City of Linden. The scam message continued: 'Our records show that as of today, you still have an outstanding traffic ticket… Please pay immediately before enforcement to avoid license dispensation and further legal disputes.' What should you do if you receive one of the DMV scam texts? The Federal Trade Commission (FTC) has a website with consumer advice, which suggests various steps people can take to protect themselves from text message scams. First, those who receive the text can copy the message and forward it to 7726 (SPAM), which could allow your provider to 'block similar messages in the future.' People can also report it to the FTC directly on the government website. In general, the DMVs of these multiple states advise their citizens to be cautious of all communications they receive, even if those messages come from claimed 'trusted sources,' and to never send personal and sensitive information via text or email. In its public notice, the Warren Township Police Department advised recipients of the text scam to follow four key steps: Delete the message immediately Do NOT click any links or provide any information Report the scam to the Federal Trade Commission at If you're unsure about your DMV status, visit the official DMV website directly or contact them by phone Generally speaking, scammers are known for creating a sense of urgency, often giving a deadline or listing serious consequences—such as the loss of driving privileges, in this case—in order to prompt a swift response from victims. David Brumley, a professor of electrical and computer engineering at Carnegie Mellon University, told TIME in 2024 that the best way to protect yourself from scams is to be alert and, if you are unsure if a text is legitimate, call the department or business directly to confirm, before taking any further action. Murat Kantarcioglu, a professor of computer science at Virginia Tech, told TIME earlier this year that people should also make sure they are informing their older relatives of any prevalent scams, as they may be less tech-savvy and more vulnerable. 'I think everyone should make it their mission to educate the older people in their family about these issues,' said Kantarcioglu, adding that it's best not to answer text messages from unverified senders or engage in phone conversations with people you don't know.
