New York's Fair Business Practices Act Significantly Expands State Consumer Protection Law

On December 19, 2025, New York's Governor signed into law the Fostering Affordability and Integrity Through Reasonable Business Practices Act ("FAIR Business Practices Act"). The FAIR Business Practices Act amends Sections 348 and 349 of New York's General Business Law for the first time since the 1970s.

The Act makes three key changes, expanding: (1) the New York Attorney General's enforcement authority; (2) the scope of prohibited conduct, and (3) the classes protected by the law.¹

The law will become effective on February 17, 2026, 60 days after its enactment.

Broader Enforcement Authority

The New York Attorney General is tasked with enforcing the FAIR Business Practices Act.² The law permits the Attorney General to bring actions or proceedings against any person, business, trade, or commerce furnishing a service within New York, even if they are outside the state.³

Expanded Scope of Prohibited Conduct

The Act opines that its purpose is to make sure "state law protects New Yorkers and the New York Economy from unfair, deceptive, and abusive business practices."⁴ Prior to the Act, New York law only prohibited deceptive acts and practices.⁵ The new law expands the scope of unlawful conduct to include both "unfair" and "abusive," defined as follows:

• Unfair Conduct – where an act or practice is likely to cause substantial injury which is not reasonably avoidable and is not outweighed by countervailing benefits to consumers or to competition.⁶
• Abusive Conduct – where an act or practice either (1) materially interferes with the ability of a person to understand a term or condition of a product or service or (2) takes unreasonable advantage of a lack of understanding on the part of a person of the material risks, costs, or conditions of a product or service; a person's inability to protect their interest; or the reasonable reliance by a person that the business is acting in their interest.⁷

On December 20, 2025, New York Attorney General, Letitia James, released a press release⁸ citing examples of some unfair and abusive business acts:

• 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 those benefits are exempt from debt collection; and
• Health insurance companies that present customers with long lists of in-network doctors who, in reality, do not accept the insurance.

The legislation also focuses on "new and emerging technologies," signaling that algorithmic decision-making processes, artificial intelligence software, and subscription models may be areas of focus for enforcement.⁹

More Protected Classes

The Act refers to "persons," as opposed to "consumers," in relation to injuries caused by unfair, abusive or deceptive practices.¹⁰ As a result, the Attorney General can take action under the Act regardless of "whether or not that act or practice is consumer oriented."¹¹ In other words, now the Attorney General can step up enforcement in business-to-business and nonprofit channels, alongside consumers.

Conclusion

The passage of the FAIR Business Practices Act signals that New York will increase its consumer protection enforcement efforts in light of the perceived federal "roll backs"¹² in the area of consumer protection. Considering these increased enforcement efforts, consumer protection compliance with state and local laws remains vital.

Wiggin and Dana possess extensive knowledge and experience in navigating both federal and state consumer protection laws and regulations.

Footnotes

1 N.Y. Gen. Bus. Law §§ 348-349 (2025)

2 N.Y. Gen. Bus. Law § 349(b)(2)-(3) (2025)

3 Id.

4 N.Y. Gen. Bus. Law § 348 (2025)

5 Of note, under the Act private litigants continue to have the ability to enforce the statute as to deceptive acts and practices only. See N.Y. Gen. Bus. Law § 349(h) (2025). Private litigants can recover actual damages or fifty dollars (whichever is greater) and attorney's fees. Id. Courts also have the authority to multiply actual damages by three times up to $1,000.00. Id.

6 N.Y. Gen. Bus. Law § 349(a)(1) (2025)

7 N.Y. Gen. Bus. Law § 349(a)(2) (2025)

8 Press Release, Attorney General James Applauds Passage of Legislation to Protect Consumers and Small Businesses (December 20, 2025), https://ag.ny.gov/press-release/2025/attorney-general-james-applauds-passage-legislation-protect-consumers-and-small

9 N.Y. Gen. Bus. Law § 348 (2025)

10 N.Y. Gen. Bus. Law § 348(a)(1) (2025)

11 N.Y. Gen. Bus. Law § 349(b)(3) (2025)

12 See Press Release, Attorney General James Applauds Passage of Legislation to Protect Consumers and Small Businesses (December 20, 2025), https://ag.ny.gov/press-release/2025/attorney-general-james-applauds-passage-legislation-protect-consumers-and-small

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