On December 19, 2025, New York enacted the Fostering Affordability and Integrity through Reasonable Business Practices Act (the “FAIR Business Practices Act” or the “Act”), representing the most significant overhaul of the state’s consumer protection statute in decades. Effective February 17, 2026, the Act fundamentally expands General Business Law Section 349 by prohibiting not only deceptive acts and practices, but also unfair and abusive conduct in the conduct of business, trade, or commerce in New York. As we previously discussed when Attorney General Letitia James advanced this legislation earlier this year, the Act reflects a deliberate and sustained effort to modernize New York’s consumer protection framework and expand the tools available to address evolving marketplace conduct.

For more than forty years, Section 349 focused exclusively on deception. The FAIR Business Practices Act broadens that framework to resemble more closely modern unfair, deceptive, or abusive acts and practices (“UDAAP”) regulatory models by reaching conduct that may not involve a traditional misrepresentation but causes consumer or market harm. Under the amended statute, an act or practice is deemed unfair if it causes or is likely to cause substantial injury that is not reasonably avoidable and is not outweighed by countervailing benefits. An abusive practice includes conduct that materially interferes with a person’s ability to understand a material term or condition, or that takes unreasonable advantage of a person’s lack of understanding, inability to protect their interests, or reasonable reliance on another to act in their interests.

The Act also removes judicially imposed limitations that had narrowed enforcement under Section 349 over time. Most notably, it eliminates the requirement that conduct be “consumer-oriented,” expressly authorizing the New York Attorney General to pursue unfair, deceptive, or abusive acts regardless of whether the conduct is directed at the general consuming public. This expansion reflects a legislative intent to extend protections beyond individual consumers to small businesses and nonprofit entities, and to address market-wide harms that may arise outside of traditional consumer transactions.

In announcing the enactment of the law, Attorney General James emphasized that the Act is intended to modernize New York’s consumer protection framework and address practices that increase costs for New Yorkers. “I am proud to have worked alongside Senator Comrie and Assemblymember Lasher to update our most important consumer protection law for the first time in 45 years to stop predatory lenders, abusive debt collectors, dishonest mortgage servicers, and so much more,” she stated in the December 20, 2025 press release. “At a time when the federal government is abandoning working people and raising the cost of living, this law will help us stop companies from taking advantage of New Yorkers.” Legislative sponsors similarly characterized the law as a necessary update to address evolving business models and practices that impose hidden or unavoidable costs on individuals and small entities.

While private rights of action under Section 349 remain focused on deceptive conduct, the Attorney General’s expanded authority to pursue unfair and abusive practices is expected to materially alter the enforcement landscape in New York. The Act’s definitions track familiar federal concepts but are not identical, and future enforcement actions and judicial interpretation will shape their practical application. As a result, conduct that has historically fallen outside of Section 349 exposure may now present heightened regulatory risk, even in the absence of affirmative misrepresentations. This expansion also aligns with the broader state enforcement posture we previously identified in early 2025, as several state attorneys general, led by New York Attorney General James, signaled a readiness to take the lead in consumer protection enforcement amid shifting federal priorities.

Industries likely to feel the most immediate impact include financial services, debt relief and collection, mortgage servicing, subscription-based businesses, digital marketplaces, and other sectors where pricing practices, fee disclosures, contract terms, or consumer reliance are central to the business model. Companies operating in or targeting New York should consider reviewing existing practices with an eye toward whether they could be characterized as unfair or abusive under the expanded statute, particularly where practices may disproportionately affect vulnerable populations or limit consumers’ ability to understand material terms.

With an effective date of February 17, 2026, the FAIR Business Practices Act provides a short but meaningful runway for businesses to assess compliance posture and enforcement exposure. As New York positions itself to take a more active role in consumer protection enforcement, the Act underscores a broader trend toward state-level expansion of UDAAP authority that regulated entities should continue to monitor closely.