As recently blogged about here, in March 2025, Office of the Attorney General for the State of New York introduced the Fostering Affordability and Integrity Through Reasonable (“FAIR”) Business Practices Act in the State Senate and State Assembly. The legislation was introduced with the intention of revising Article 22-A of New York’s General Business Law.
On June 18, 2025, the New York legislature passed the FAIR Act. It now awaits consideration by Governor Hochul.
The FAIR Act is designed to expand and strengthen consumer and small business protections, in part, by amending New York’s General Business Law §349 to also cover “unfair” and “abusive” practices, rather than just “deceptive” practices.
Some key components of the legislation include:
- Providing the New York Attorney General and private plaintiffs the ability to seek enhanced civil penalties and restitution in amounts significantly more than available statutory damages pursuant to New York General Business Law Section 349.
- Increasing statutory damages available under GBL §349 from $50 to $1,000, and permitting recovery of actual and punitive damages.
- Penalties for unfair, deceptive or abusive practices could potentially include penalties of up to $5,000, per violation.
- Knowing or willful violations could result in penalties totaling the greater of $15,000 or three times the amount of restitution, per violation.
- Prevailing plaintiffs in private actions would also be permitted to recover attorneys’ fees and costs.
- Enhanced civil penalties for harm to vulnerable people, veterans and those with limited English proficiency.
- The Act contemplates stopping lenders, including auto lenders, mortgage servicers, and student loan servicers, from deceptively steering people into higher cost loans (and reducing unnecessary and hidden fees and stop unfair billing practices by health care companies).
- Permitting the NY AG and private plaintiffs (individuals, small businesses and non-profits) to enforce even a single instance of unfair, deceptive and abusive acts andpractices, including, but not limited to, false advertising.
- Applies regardless of whether the act or practice is “"consumer-oriented,” possesses a “public impact,” or is part of a “pattern of conduct” (judicially imposed limitations that presently exist pursuant to GBL §349).
- Expanding New York’s current consumer protection law, GBL §349 (currently prohibits only deceptive business acts and practices) to also include unfair or abusive acts by companies and individuals (including, but not limited to, hidden “junk fees,” difficult to cancel subscriptions; 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, and health insurance companies that use long lists of in-network doctors who turn out not to accept the insurance).
- Providing specific definitions for terms such as “unfair,” “deceptive” and “abusive.”
Takeaway: New York’s existing consumer protection law is primarily governed by GBL §349 which focuses primarily on “deceptive” acts and practices. According to the Office of the New York Attorney General, GBL §349 is insufficient to adequately protect New Yorkers from technological advances and unfair practices associated therewith. Businesses operating in New York should consult with an experienced attorney general defense lawyer and keep an eye on the progress of the proposed legislation. The FAIR Act, as drafted, would increase the damages available in a private right of action from the greater of $50 or actual damages under current law to $1,000 in statutory damages, plus the aggrieved person’s actual damages, if any. In cases involving willful or knowing violations, courts would be required to award treble damages, reasonable attorneys’ fees and costs to a prevailing plaintiff. The Act would also permit class action lawsuits to recover actual, statutory or punitive damages if the prohibited act or practice has caused damage to others similarly situated. The availability of supplemental civil penalties for vulnerable persons would also be significantly expanded.
