New York AG Unveils Consumer Protection Legislation Following Federal Funding Reductions
NEW YORK—According to New York Attorney General Letitia James, newly proposed state legislation is aimed at shielding consumers from scams, predatory lending, and other exploitative business practices.
During a press event on March 13, with Assemblyman Micah Lasher and state Sen. Leroy Comrie voicing their support, James introduced the FAIR Business Practices Act. This initiative seeks to fortify protections for New Yorkers against harmful business conduct, particularly in light of insufficient federal oversight.
James highlighted that the legislation targets various exploitative actions, including predatory lenders pushing overpriced and high-interest loans on small businesses, student loan servicers guiding borrowers toward costly payment plans, nursing homes unjustly suing the estates of deceased individuals, and companies complicating the cancellation process for subscriptions.
The Attorney General criticized the state’s current consumer protection laws as outdated and inadequate, expressing her concern that New Yorkers have been overly dependent on federal protections.
“We cannot depend on federal consumer protection laws,” James stated. “Indeed, we cannot trust the federal government. Recently, the federal government has made moves to dismantle regulatory bodies, particularly the Consumer Financial Protection Bureau (CFPB), which they tried to weaken.”
On February 1, President Donald Trump dismissed Rohit Chopra, the former director of the CFPB. Following this, a temporary director halted all operations within the agency, canceled $100 million in contracts, and terminated 70 employees.
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Lasher remarked during the announcement, “It may surprise many that deep-blue New York has some of the weakest consumer protection laws in the nation.”
The state’s consumer protection law, enacted in 1970, prohibits businesses from engaging in deceptive practices. However, it may leave consumers exposed to unfair or abusive actions by companies, as stated by the attorney general’s office.
The Epoch Times inquired whether there had been an uptick in complaints or reports of the unfair or abusive business practices since the new administration took office.
“I believe there has been an increase in fraudulent, deceptive, and unfair practices throughout my tenure as attorney general,” James responded. “States must step in to fill the gap left by the federal government. I and others will be working on that. … We need to enhance our statute here in New York.”
The Associated Press contributed to this report.
