Bill empowers the Attorney General and consumers to challenge unfair business practices
ALBANY, NY — Consumer Reports called on New York lawmakers to support a bill proposed by Attorney General Letitia James today that aims to strengthen the state’s consumer protection law by empowering the Attorney General and consumers to challenge unfair business practices in addition to those that are considered deceptive. The FAIR Business Practices Act will bring New York’s law up to date with similar laws in most states and deter dishonest and illegal practices that harm consumers, according to CR.
“While New York has been a leader on a number of issues, it lags behind other states when it comes to protecting consumers from unfair business practices that are not considered outright deceptive,” said Chuck Bell, advocacy program director at Consumer Reports. “This leaves New Yorkers vulnerable since consumers can be harmed by unfair harassment by debt collectors, high-pressure sales tactics, and one-sided contract terms even when these practices are not necessarily deceptive.”
Bell continued, “This bill brings New York’s law in line with the protections currently in place in most other states and will ensure that New Yorkers can be protected when they are treated unfairly. Strengthening New York’s law is especially important at a time when the Consumer Financial Protection Bureau’s ability to protect consumers is under attack in Washington.”
The backbone of consumer protection in the states is generally contained in Unfair and Deceptive Acts and Practices (UDAP) laws, which prohibit unfair and deceptive practices in consumer transactions, including sales of cars and other goods, loans, home improvements, utility contracts, and mortgage transactions. UDAP laws are a main line of defense against predatory and unscrupulous business practices for billions of transactions a year. They give both state agencies and consumers the power to take action to challenge fraud and abuse and seek remedies against unfair practices in court.
New York’s current version of the law only gives consumers the right to sue in civil court over “deceptive acts and practices” but not “unfair or unlawful acts and practices,” as other states do. New York is one of only five states that does not include a broad prohibition of unfairness or unconscionability. This sharply limits the ability of the New York Attorney General’s office and consumers to challenge unfair business practices and seek relief in court.
Media Contact: Michael McCauley, michael.mccauley@consumer.org