Latest news with #FAIRBusinessPracticesAct
New York Post
13-05-2025
- Business
- New York Post
NY AG Tish James proves she only cares about her own brand, not the little guy
Progressives love screwing over the little guy: Just look at state Attorney General Tish James' latest 'pro-consumer' move, the so-called 'FAIR Business Practices Act.' She's pushing the Legislature to pass it in the name of cracking down on junk fees, deed theft and other shady moves — but what it mainly does is offer new shakedown opportunities for shady lawyers. Groups repping New York small businesses are outraged at how it widens the rules around who is actually allowed to sue, and for what. It also radically expands the scope of what constitutes unlawful business conduct in the Empire State from 'deceptive' practices to 'unfair' and 'abusive' ones — categories with no real definition. That is: It replaces a clear, objective standard with a subjective one, and sets the stage for any low-rent legal shark to gin up a lawsuit that the right jury might buy. Big corporations can defend themselves against frivolous suits of this kind, but smaller companies can't — and will likely settle for cash. Such lawsuits already cost the US economy hundreds of billions a year, according to analysts; why on earth would James want to drive up that figure? Especially since the bill's supposed point is to protect consumers, who will end up paying the increased costs the new legal regime will bring. In New York, per one recent analysis, BS lawsuits already cost businesses some $88.6 billion a year — and James wants to supercharge the extortion. It's 'protection' we wouldn't wish on our worst enemy, in other words. But James has never been about actually helping the everyday New Yorkers who put her in office. She's all about enhancing her own political brand (and throwing a bone to the Dem-backing trial bar while she's at it). The interests of the voters she allegedly represents be damned.
Time of India
13-05-2025
- Business
- Time of India
‘Riddled with loopholes': Business groups slam NY attorney general Letitia James' consumer bill as legal ‘shakedown scheme'
File photo: New York attorney general Letitia James New York attorney general Letitia James is under fire from prominent business groups over her proposed FAIR Business Practices Act , with critics warning it could expose small businesses to a wave of 'legal shakedowns' driven by opportunistic attorneys, reported The New York Post. The legislation, aimed at cracking down on consumer scams like deed theft, junk fees and AI-powered fraud, is being pitched as a way to protect New Yorkers from abusive practices. But business advocates argue the bill would strip key legal safeguards and lead to a surge in frivolous lawsuits. 'The so-called FAIR Act would be anything but fair to New York's business community, especially Main Street businesses,' Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York , was quoted as saying by the New York Post. He warned it 'replaces due process with a system that invites abuse' by encouraging profit-driven law firms to target small companies with settlement threats. Stebbins said the bill would allow attorneys to demand pre-suit settlements, creating 'a cottage industry of legal shakedowns' where small businesses settle even baseless claims to avoid costly legal battles. James, however, has defended the bill as essential in an era of growing digital fraud and reduced federal enforcement. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Learn How Smart Traders Use Data to Navigate Volatile Markets Trader Headline Learn More Undo 'At a time when the federal government is making life harder, we want to make life easier for New Yorkers,' she said in March, as per the New York Post. 'The FAIR Business Practices Act will close loopholes that make it too easy for New Yorkers to be scammed.' The bill targets a wide range of deceptive practices, from student loan servicers steering borrowers into expensive plans, to insurance companies listing in-network doctors who don't accept certain plans. It also aims to hold car dealers and nursing homes accountable for misleading or abusive conduct. Still, business groups argue the bill's definitions are vague and open to exploitation. Chelsea Lemon of the Business Council said lawmakers should reject the bill if they are 'truly serious about addressing affordability.' Ashley Ranslow from the National Federation of Independent Businesses warned it could 'make it easier for lawyers to shake down small businesses with vague legal threats.' Justin Wilcox of Upstate United echoed similar concerns, saying the legislation is 'riddled with loopholes lawyers will exploit for profit, not justice.' Despite the backlash, James' office shared support from groups like the Student Borrower Protection Center and the Small Business Majority. As quoted by New York Post, Winston Berkman-Breen from the borrower group said, 'New Yorkers need the state to pass the FAIR Business Practices Act.' Lindsey Vigoda added that the bill would 'shield Main Street businesses from predatory lenders.' The legislative push comes as James faces mounting political heat. The Trump administration recently referred her for criminal investigation over alleged mortgage fraud. The justice department probe, centred on claims she misrepresented properties to gain better loan terms, has sparked fierce debate. US President Trump, speaking from the Oval Office, called her 'a total crook' and a 'disaster for New York.' James has denied any wrongdoing. Her lawyer, Abbe Lowell said the disputed filings were either mistaken or based on outdated records and accused the Trump administration of political retribution. 'She will not be intimidated by bullies, no matter who they are,' a spokesperson was quoted as saying by the BBC.
New York Post
12-05-2025
- Business
- New York Post
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 / '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 – 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.
Yahoo
17-03-2025
- Business
- Yahoo
FAIR Business Practices Act introduced: How it could help NY consumers, small businesses
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 ebarnes@ This article originally appeared on Rochester Democrat and Chronicle: FAIR Business Practices Act introduced: How it could help NY consumers
