The New York State Assembly moved to pass the much-talked-about consumer protection reforms, a green light for the state's Attorney General's Office to tighten the reins on predatory lenders and deceptive business practices. As reported by Spectrum News 1, the Fostering Affordability and Integrity through Reasonable Business Practices, or FAIR Business Practices Act, saw a significant majority vote of 94-48 in its favor on Tuesday night.
The altered legislation, softened by lobbyists' stiff resistance, now positions the Attorney General to pursue deceptive practices by predatory lenders, student loan services, and nursing homes, among others. According to Gothamist, it was business groups who influenced the lawmakers, suggesting that expanded consumer protections would beckon a tide of lawsuits, effectively flooding them with litigation that they believe could burden the New York business climate.
Indeed, there were legislators who shared these concerns, as "It exposes businesses to increased lawsuits, which increases costs [and] increases the need for them to do things other than business," claimed Long Island Republican Assemblyman Ed Ra, as he cast his vote against the measure, Spectrum News 1 reported. The business community's worries, however, did not halt the bill's passage, which signifies the first expansion of consumer protection powers for the AG's office in over half a century, with New York state law aligning more closely with 42 other states.
On the floor, sponsor Assemblyman Micah Lasher championed the act, detailing that markets thrive on consumer confidence, and bolstering protection fosters a "thriving economy." The viable bill, according to the same Spectrum News 1 piece, was a product of "weeks of negotiations between business leaders and the AG's office," trimming potential civil penalties and class action lawsuit provisions to pacify business entities that feared the proposed changes' implications on small businesses.
Gov. Kathy Hochul's stance remains to be seen, though she has demonstrated support for strengthening consumer protections in the past, as evidenced by her 2024 executive budget proposal. With the current legislative session concluded, her pen holds the power to enact the law that may redefine the state's consumer marketplace.
