On March 13, New York Attorney General Letitia James announced proposed legislation to strengthen the state’s consumer protection framework by expanding enforcement powers beyond deceptive acts and practices to also include unfair and abusive business acts and practices. The “Fostering Affordability and Integrity through Reasonable (FAIR) Business Practices Act” would modernize New York’s 1970 consumer protection law, allowing both the attorney general’s office and individual plaintiffs to pursue actions matching the CFPB’s UDAAP authority.

The legislation would in-part empower the New York Office of the Attorney General to protect New Yorkers from a wide array of abuses, including AI-based schemes, hard-to-cancel subscriptions, “junk fees,” and predatory lending. The proposed legislation, for example, targets student loan servicers steering borrowers into expensive repayment plans, nursing homes pursuing deceased residents’ relatives for unpaid bills without legal basis, and debt collectors seizing exempt Social Security benefits. The proposed legislation also directs courts to interpret the law’s protections more broadly and exceptions more narrowly.

The FAIR Business Practices Act establishes civil penalties for UDAAP violations and special protections for vulnerable persons, including those over 65, active military members, veterans and individuals with limited English proficiency. Former CFPB Director and FTC Commissioner Rohit Chopra endorsed the measure, stating that “[we] need stronger state laws to combat abuses that harm families and honest businesses.”