New York to Consider Bill to Strengthen Consumer Protection Law

New York State Attorney General Letitia James announced a new bill designed to strengthen the state’s consumer protection law, saying the bill is needed at a time when the federal government is rolling back similar protections.

The Fostering Affordability and Integrity through Reasonable Business Practices Act, or FAIR Business Practices Act, would combat a wide range of scams, the Office of the Attorney General said in a Thursday (March 13) press release.

“The FAIR Business Practices Act will close loopholes that make it too easy for New Yorkers to be scammed, and will allow my office to go after anyone who violates the law and look forward to working with my partners in state government to ensure that as Washington retreats from protecting consumers, New York steps up to lead,” James said in the release.

The act will target business practices like making it difficult to cancel a subscription, steering borrowers to the most expensive repayment plan, charging for add-on warranties that customers didn’t purchase, suing relatives of deceased nursing home residents for unpaid bills, taking advantage of consumers with limited English proficiency, and collecting seniors’ Social Security benefits when they are exempt from debt collection, according to the release.

New York’s current consumer protection law, which was passed in 1970, prohibits deceptive business acts and practices but does not cover “unfair and abusive acts” like these, the release said.

“Forty-two other states and federal law already prohibit unfair practices, making New York’s current law both antiquated and inadequate,” the release said.

The FAIR Business Practices Act has been introduced in the New York State Senate and State Assembly, and James will work to support its passage into law, per the release.

In another, separate action, the Office of the Attorney General said Monday (March 10) that it sued several insurance companies doing business as National General and Allstate, alleging that they failed to protect the personal information of consumers.

In February, James said she was one of 23 state attorneys general who joined a lawsuit fighting the shutdown of the Consumer Financial Protection Bureau. The states filed an amicus brief arguing that closing the CFPB would harm consumers and make consumer protection laws harder to enforce.