- within Insolvency/Bankruptcy/Re-Structuring topic(s)
On December 19, New York Governor Kathy Hochul signed into law S8416, amending New York's General Business Law to enact the Fostering Affordability and Integrity Through Reasonable Business Practices Act. The law expands the state's primary consumer protection statute beyond deceptive acts to also prohibit unfair and abusive business practices.
The enactment follows months of debate over the scope of General Business Law Section 349 and reflects a negotiated approach that broadens enforcement authority while preserving certain judicial doctrines that had developed over time. The amendments take effect sixty days after enactment.
The legislation makes several material changes to the scope and enforcement of General Business Law Section 349, including:
- Expansion beyond deceptive practices. The statute now expressly prohibits unfair and abusive acts and practices. Unfairness is defined using a substantial injury standard modeled on federal law, while abusiveness focuses on conduct that interferes with understanding, exploits unequal bargaining power, or takes unreasonable advantage of reliance.
- Attorney General–only authority for unfair and abusive claims. Enforcement authority for unfair and abusive acts is vested exclusively in the Attorney General. Private plaintiffs retain a right of action only for deceptive acts and practices, preserving existing damages standards.
Putting It Into Practice: State consumer protection activity has accelerated in 2025 as states respond to uncertainty at the federal level (previously discussed here, here, and here). New York's enactment comes amid a notable pullback in federal consumer protection regulation and enforcement. The law represents the most comprehensive state-level response to the federal government's retrenchment to date, and is likely will serve as a model for other jurisdictions. Notably, in March 2024, the CFPB, under then-Director Rohit Chopra, issued a letter to New York Governor Hochul supporting amendments to New York's laws to address unfairness and abusiveness.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
