On Thursday March 13, 2025, New York Attorney General Letitia James announced proposed legislation to expand New York’s consumer protection law: the Fostering Affordability and Integrity through Reasonable (FAIR) Business Practices Act (“the Act”). The Act would update and expand New York’s current consumer protection law, Sections 349 and 350 of the New York General Business Law (“GBL”), to encompass a broader range of practices and claims.
The current versions of Sections 349 and 350 make unlawful certain deceptive business acts and practices and false advertising. The Act would amend Section 349 to cover not only “deceptive” business acts and practices, but also conduct that may fall under vague definitions of “unfair” and “abusive” acts and practices. The Act would further expand Section 349 by making it applicable “regardless of whether or not that act or practice is consumer-oriented [or] has a public impact or impact on consumers ….” The Act would also increase statutory damages to $1,000 and grant standing to organizations and third parties to the fullest extent otherwise permitted by law. However, the Act would also create affirmative defenses that limit plaintiffs to individuals and small entities, and excludes acts or practices that could be addressed by federal securities or intellectual property laws or that involve “high-value experienced commercial transaction[s]” directed exclusively to the parties to such transactions.
While the Attorney General has indicated that these amendments would address practices involving arbitrary difficulty in canceling subscriptions and nursing homes suing relatives of deceased residents, the proposed bill creates a prospect of liability for a substantially broader range of conduct. For example, plaintiffs’ lawyers may argue that the Act supports a wide range of claims relating to practices involving alleged hidden fees, data collection, website “dark patterns,” algorithmic price discrimination, fake reviews, misleading “limited” supply or offer claims, “greenwashing” claims, and aggressive sales and marketing tactics.
The officials behind the proposal argue that the Act would provide New York consumers with enhanced protection even as the Trump Administration eases the enforcement of some consumer-oriented federal laws. The Act has been introduced in the New York State Senate and Assembly, and Attorney General James has promised to support its advancement. Lawmakers in Democratic-controlled states may pursue similar proposals as a response to changing enforcement priorities at the federal level.