New York State has taken a significant step forward in consumer protection by enacting the FAIR Business Practices Act, a historic piece of legislation designed to safeguard residents from unfair, deceptive, and abusive business practices. The law, signed by Governor Kathy Hochul on December 20, 2025, represents the first major expansion of New York’s primary consumer protection statute, General Business Law (GBL) Section 349, in 45 years.
Expanding Protections for New Yorkers
The FAIR Business Practices Act broadens the scope of GBL §349, which previously prohibited only "deceptive" acts and practices. Under the new law, the definition now includes "unfair" and "abusive" practices. According to the legislation, an "unfair" practice is one that causes or is likely to cause substantial injury to consumers that cannot be reasonably avoided and is not outweighed by benefits to consumers or competition. An "abusive" practice, meanwhile, is one that interferes with a person’s ability to understand the terms of a product or service or takes unreasonable advantage of factors such as a lack of understanding or reliance on a business to act in the consumer’s interest.
The legislation aims to combat a variety of exploitative practices, such as predatory lending, hidden fees in healthcare billing, and schemes that target vulnerable groups like seniors and individuals with limited English proficiency. Among the new protections, the law targets specific practices such as auto lenders steering borrowers into high-cost loans, nursing homes suing relatives of deceased residents without legal basis, and health insurers providing inaccurate lists of in-network doctors.
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Stronger Enforcement and Penalties
The new law significantly enhances the enforcement tools available to the Office of the Attorney General (OAG) and private plaintiffs. Previously, statutory damages under GBL §349 were capped at $50. The FAIR Business Practices Act raises this amount to $1,000 and allows for the recovery of actual and punitive damages. Penalties for violations can now reach up to $5,000 per incident, and knowing or willful violations could result in penalties as high as $15,000 or three times the restitution amount per violation. Private plaintiffs also gain the ability to recover attorneys’ fees and costs.
The legislation also eliminates several judicially imposed limitations under the previous law. It allows enforcement even in single instances of unfair, deceptive, or abusive practices, regardless of whether they are consumer-oriented, have public impact, or form part of a pattern of conduct.
Key Support for Working Families and Small Businesses
New York Attorney General Letitia James emphasized the significance of this law in addressing the rising costs of living and protecting vulnerable populations. "The FAIR Business Practices Act will help us tackle rising costs and protect working families and small businesses", said James. "I am proud to have worked alongside Senator Comrie and Assemblymember Lasher to update our most important consumer protection law for the first time in 45 years to stop predatory lenders, abusive debt collectors, dishonest mortgage servicers, and so much more. At a time when the federal government is abandoning working people and raising the cost of living, this law will help us stop companies from taking advantage of New Yorkers."
Senator Leroy Comrie praised the law for modernizing New York’s consumer protections and creating a fairer business environment. "Far too many consumers and small businesses across New York state have faced deceptive financing schemes, abusive contract terms, and predatory practices that have spiraled individuals and smaller businesses into insolvency and legal battles they often cannot afford. With this bill becoming law, that ends today."
Assemblymember Micah Lasher called the passage of the FAIR Business Practices Act a victory for New York consumers. "For too long, our state has had one of the weakest consumer protection laws in the country – and that ends today. Now, Attorney General James will have far stronger legal tools to go after the unfair and abusive practices that drain billions from hardworking New Yorkers every single year."
Bringing New York in Line with Other States
Before the enactment of this law, New York’s consumer protection framework lagged behind 41 other states that already included protections against unfair and abusive practices. The FAIR Business Practices Act aligns New York with the majority of states by codifying protections against harmful business practices and granting the Attorney General and private plaintiffs greater legal authority to hold bad actors accountable.
The passage of the FAIR Act signals New York’s commitment to standing up for consumers in the face of federal rollbacks on protections. By strengthening enforcement mechanisms and providing clearer definitions for unfair, deceptive, and abusive practices, the law aims to create a safer marketplace for all New Yorkers. Businesses operating in the state are advised to ensure compliance with the updated statute to avoid potential investigations or legal actions.
As New York Attorney General James put it: "Consumer protection is affordability, plain and simple. When we stop companies from cheating people, families keep more of what they earn and can spend it on what they actually need." This landmark legislation delivers on that promise, marking a new era in consumer rights for the Empire State.
