FAIR Business Practices Act: Strengthening Consumer Protection in NY

The enactment of the FAIR Business Practices Act in New York marks a pivotal update in the state's consumer protection framework. Sponsored by State Senator Leroy Comrie and Assemblymember Micah Lasher, and crafted with input from Attorney General Letitia James, this legislation revises General Business Law §349 for the first time since its inception. It aims to curb unsound and misleading business practices impacting consumers and small enterprises throughout New York, demonstrating a commitment to regulatory compliance requirements.

Expanding Regulatory Oversight

The FAIR Business Practices Act broadens New York’s authority in managing business conduct by deterring predatory practices from lenders and other service providers. Targeted sectors include auto financiers, mortgage processors, and student loan services, where previous practices have led borrowers toward higher-cost borrowing without proper disclosure. The Act also addresses unfair billing in healthcare, ensuring protection for consumers with limited English proficiency from exploitative acts and emphasizing the need for transparent risk management protocols.

Enhancing Consumer Protection

With the new law, the New York Attorney General's Office gains enhanced regulatory powers to prevent unethical business strategies, aligning the state's consumer protection statutes with broader measures in 41 other states. This modernization enables New York to deter businesses from imposing unwarranted costs and deceptive agreements, reducing financial distress for individuals and emerging enterprises. Insurance industry professionals must prioritize transparency and fair practices, recognizing the landmark law's role in driving ethical market environments.