New York enterprise teams are blasting Lawyer Common Tish James for a pro-consumer push that they worry could be a legislative misfire — boosting grasping attorneys and unleashing “authorized shakedowns.”
James’ FAIR Enterprise Practices Act seems to be to tighten up shopper protections to crack down on shady crimes like deed theft, junk charges and hard-to-cancel subscriptions, however critics mentioned it is going to open up small companies to frivolous lawsuits and authorized threats.
“The so-called FAIR Act could be something however truthful to New York’s enterprise group, particularly Most important Avenue companies,” mentioned Tom Stebbins, govt director of the Lawsuit Reform Alliance of NY.
“It strips away longstanding authorized safeguards and due course of protections — like guaranteeing that claims are consumer-oriented or that plaintiffs even have standing to sue — and replaces them with a system that invitations abuse,” Stebbins added.
“The invoice would particularly authorize profit-motivated legislation companies to ship letters demanding pre-suit settlements for damages and charges,” Stebbins mentioned. “That’s a recipe for a cottage trade of authorized shakedowns, the place small companies are focused not for wrongdoing, however as a result of they lack the sources to combat again.”
The act targets firms engaged in synthetic intelligence-based schemes, on-line phishing scams and knowledge breaches.
It additionally takes intention at scholar mortgage companies that steer debtors into costlier compensation plans, unscrupulous automotive sellers, shady nursing houses that sue family of deceased residents for unpaid payments — and medical health insurance firms that use lengthy lists of in-network docs who end up to not settle for sufferers’ insurance coverage.
However enterprise advocates fear it’ll create an unintended burden on small companies, citing a examine claiming “extra tort prices” already saddle New Yorkers with $61.8 billion in pointless authorized payments.
Ashley Ranslow, New York state director for the Nationwide Federation of Unbiased Companies, mentioned James’ proposal “would make it simpler for attorneys to shake down small companies with imprecise authorized threats.
“Lawmakers ought to be targeted on reducing prices and supporting small companies, not making it simpler for rich attorneys who’ve demonstrated no precise hurt to sue them out of existence,” she mentioned.
Justin Wilcox, govt director of Upstate United, mentioned the invoice has “imprecise definitions” that attorneys will exploit for revenue, not justice.
Enterprise Council lobbyist Chelsea Lemon mentioned Gov. Kathy Hochul and lawmakers must reject the invoice if they’re “actually critical about addressing affordability.”
James had no instant touch upon backlash from enterprise pursuits.
However throughout a press convention in March, she mentioned the laws was obligatory whereas criticizing the Trump administration.
“At a time when the federal authorities is making life tougher, we need to make life simpler for New Yorkers,” James mentioned.
“The FAIR Enterprise Practices Act will shut loopholes that make it too simple for New Yorkers to be scammed, and can enable my workplace to go after anybody who violates the legislation and look ahead to working with my companions in state authorities to make sure that as Washington retreats from defending customers, New York steps as much as lead.”
Her workplace on Sunday offered statements from the Scholar Borrower Safety Heart and the Small Enterprise Majority who help the FAIR Act.
Winston Berkman-Breen, authorized director on the Scholar Borrower Safety Heart mentioned: “Because the Trump Administration guts federal shopper safety companies and monetary regulators, huge companies are getting a free move to tear off working households and every-day New Yorkers. Abusive practices by scholar mortgage servicers are locking debtors out of inexpensive 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 want the state to move the FAIR Enterprise Practices Act.”
Lindsey Vigoda, New York Director of Small Enterprise Majority mentioned: “As New York small companies wrestle with rising prices resulting from tariffs, healthcare costs, and excessive industrial leasing, New York should move the FAIR Enterprise Practices Act to defend Most important Avenue companies from predatory lenders. This laws would curtail abusive charges which are stretching our small enterprise homeowners skinny. In 2025, predatory lending merchandise are extra prevalent than ever, as conventional financial institution loans proceed to say no and abusive on-line merchandise fill the void for the small enterprise group.”
“The place New York was as soon as a pacesetter in defending small companies from unhealthy loans, our neighboring states have all since handed legal guidelines to cease unfair, abusive, and misleading habits. We can not proceed to fall behind on these common sense protections. In a state identified for innovation and alternative, it’s time for New York to guard our most valuable asset – our small enterprise group.”
James has been within the political and authorized hearth herself of late.
President Trump’s Justice Division final week launched a felony probe into mortgage fraud claims towards her.
Taxpayers additionally may very well be on the hook for authorized payments from the investigation into her actual property dealings, in keeping with the state finances.
James dismissed the allegations as “baseless” and claimed the federal probe was a part of a “revenge tour” by the president as a result of she introduced civil fraud fees towards him and his firm, the Trump Group.
James famously professed, “Nobody is above the legislation,” when she launched her investigation into Trump in 2019 — which ended with a $454 million judgment towards him and his actual property agency.
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