Tish James’ pro-consumer push could spark ‘legal – Business News
New York business teams are blasting Attorney General Tish James for a pro-consumer push that they concern can be a legislative misfire — boosting grasping legal professionals and unleashing “legal shakedowns.”
James’ FAIR Business Practices Act seems to tighten up client protections to crack down on shady crimes like deed theft, junk charges and hard-to-cancel subscriptions, however critics stated it’ll open up small companies to frivolous lawsuits and legal threats.
“The so-called FAIR Act would be anything but fair to New York’s business community, especially Main Street businesses,” stated Tom Stebbins, government director of the Lawsuit Reform Alliance of NY.
Attorney General Letitia James makes an announcement about new laws to guard shoppers and small companies on the AG’s workplace in New York on March 13, 2025. Lev Radin/ZUMA Press Wire / SplashNews.com
“It strips away longstanding legal safeguards and due process protections — like ensuring that claims are consumer-oriented or that plaintiffs actually have standing to sue — and replaces them with a system that invites abuse,” Stebbins added.
“The bill would specifically authorize profit-motivated law firms to send letters demanding pre-suit settlements for damages and fees,” Stebbins stated. “That’s a recipe for a cottage industry of legal shakedowns, where small businesses are targeted not for wrongdoing, but because they lack the resources to fight back.”
The act targets firms engaged in artificial intelligence-based schemes, online phishing scams and knowledge breaches.
It additionally takes intention at pupil loan providers that steer debtors into more costly reimbursement plans, unscrupulous car sellers, shady nursing properties that sue kinfolk of deceased residents for unpaid payments — and health insurance coverage firms that use long lists of in-network docs who prove to not settle for sufferers’ insurance coverage.
But business advocates fear it’ll create an unintended burden on small companies, citing a examine claiming “excess tort costs” already saddle New Yorkers with $61.8 billion in pointless legal payments.
The Consumer Financial Protection Bureau headquarters on February 10, 2025, in Washington, DC. Getty Images
Ashley Ranslow, New York state director for the National Federation of Independent Businesses, stated James’ proposal “would make it simpler for legal professionals to shake down small companies with obscure legal threats.
“Lawmakers should be focused on cutting costs and supporting small businesses, not making it easier for wealthy lawyers who have demonstrated no actual harm to sue them out of existence,” she stated.
Justin Wilcox, government director of Upstate United, stated the invoice has “vague definitions” that legal professionals will exploit for revenue, not justice.
Business Council lobbyist Chelsea Lemon stated Gov. Kathy Hochul and lawmakers need to reject the invoice if they’re “truly serious about addressing affordability.”
James had no rapid touch upon backlash from business pursuits.
But during a press convention in March, she stated the laws was crucial whereas criticizing the Trump administration.
“At a time when the federal government is making life harder, we want to make life easier for New Yorkers,” James stated.
“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.”
During a press convention in March, James stated the laws was crucial whereas criticizing the Trump administration. Pixsooz – stock.adobe.com
Her workplace on Sunday supplied statements from the Student Borrower Protection Center and the Small Business Majority who help the FAIR Act.
Winston Berkman-Breen, legal director on the Student Borrower Protection Center stated: “As the Trump Administration guts federal client safety companies and financial regulators, massive companies are getting a free cross to tear off working households and every-day New Yorkers. Abusive practices by pupil loan servicers are locking debtors out of reasonably priced choices simply because the federal authorities is making ready to grab wages and federal advantages from debtors who fall behind on their funds.
“New Yorkers need the state to pass the FAIR Business Practices Act.”
Lindsey Vigoda, New York Director of Small Business Majority stated: “As New York small businesses struggle with rising costs due to tariffs, healthcare prices, and high commercial leasing, New York must pass the FAIR Business Practices Act to shield Main Street businesses from predatory lenders. This legislation would curtail abusive fees that are stretching our small business owners thin. In 2025, predatory lending products are more prevalent than ever, as traditional bank loans continue to decline and abusive online products fill the void for the small business community.”
“Where New York was once a leader in protecting small businesses from bad loans, our neighboring states have all since passed laws to stop unfair, abusive, and deceptive behavior. We cannot continue to fall behind on these common-sense protections. In a state known for innovation and opportunity, it’s time for New York to protect our most precious asset – our small business community.”
James has been within the political and legal fire herself of late.
President Trump’s Justice Department final week launched a prison probe into mortgage fraud claims towards her.
Taxpayers additionally could be on the hook for legal payments from the investigation into her real estate dealings, in accordance with the state finances.
James dismissed the allegations as “baseless” and claimed the federal probe was half of a “revenge tour” by the president as a result of she introduced civil fraud costs towards him and his company, the Trump Organization.
James famously professed, “No one is above the law,” when she launched her investigation into Trump in 2019 — which ended with a $454 million judgment towards him and his real estate firm.
