By Roland G. Ottley, Esq.
The Ottley Law Firm, PC (TOLFPC)

For over four decades, New York's consumer protection framework rested upon a singular pillar: the prohibition of deceptive acts and practices under General Business Law § 349. While this statute served as a formidable shield against outright falsehoods and misleading representations, it left a vast expanse of harmful conduct untouched: practices that, while not technically deceptive, inflicted substantial injury upon consumers, tenants, and small businesses alike.

On December 19, 2025, Governor Kathy Hochul signed into law the Fostering Affordability and Integrity through Reasonable (FAIR) Business Practices Act, ushering in the most significant transformation of New York's consumer protection landscape since 1980. Effective February 17, 2026, this legislation fundamentally redefines the boundaries of prohibited commercial conduct and expands the arsenal available to the New York Attorney General in combating marketplace abuse.

This analysis provides a comprehensive examination of the FAIR Act's provisions, its enforcement architecture, and the strategic implications for consumers seeking to vindicate their rights.

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I. The Paradigm Shift: From "Deceptive" to "UDAAP"

The Legacy Framework

The original GBL § 349, enacted in 1980, prohibited "deceptive acts or practices in the conduct of any business, trade or commerce." Courts interpreting this statute established that a plaintiff must demonstrate conduct that is "likely to mislead a reasonable consumer acting reasonably under the circumstances" (Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, 85 N.Y.2d 20 [1995]).

This "reasonable consumer" standard, while protective against fraud and misrepresentation, proved inadequate against sophisticated practices designed to exploit vulnerabilities without technically deceiving anyone.

The UDAAP Revolution

The FAIR Act adopts the federal UDAAP framework: Unfair, Deceptive, or Abusive Acts and Practices: borrowed from the Federal Trade Commission Act (15 U.S.C. § 45) and the Consumer Financial Protection Act (12 U.S.C. § 5531). For the first time in New York history, conduct need not be deceptive to be unlawful; it must merely be unfair or abusive.

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II. The Three Categories of Prohibited Conduct: A Comprehensive Breakdown

The FAIR Act codifies precise definitions for each category of prohibited conduct, eliminating ambiguity and providing clear standards for enforcement:

Category	Legal Standard	Real-World Example
Deceptive	Conduct likely to mislead a reasonable consumer acting reasonably under the circumstances.	A lender advertises a "0% APR" loan while burying substantial fees in fine print, creating a false impression of the total cost of credit.
Unfair	Conduct that causes or is likely to cause substantial injury to consumers that is (1) not reasonably avoidable and (2) not outweighed by countervailing benefits to consumers or competition.	A landlord imposes mandatory "administrative fees" of $500 monthly that serve no legitimate purpose and cannot be negotiated or avoided by tenants.
Abusive	Conduct that (1) materially interferes with a person's ability to understand a term or condition, or (2) takes unreasonable advantage of a person's lack of understanding, inability to protect their interests, or reasonable reliance on another party.	A contractor targets elderly homeowners with complex, jargon-laden contracts for unnecessary repairs, exploiting cognitive vulnerabilities to secure inflated payments.

Practical Applications

For Tenants: The "unfair" standard now captures predatory "junk fees": processing charges, application fees, and administrative costs that serve no legitimate purpose yet extract substantial sums from renters who have no practical ability to avoid them. For further guidance on tenant protections, visit our landlord-tenant litigation resources.

For Accident Victims: Insurance adjusters who deliberately present settlement offers in confusing formats designed to obscure the true value of claims may now face scrutiny under the "abusive" standard.

For Immigrants and Non-English Speakers: The "abusive" prong specifically targets practices that exploit linguistic or cultural barriers: a recognition that vulnerability extends beyond mere financial sophistication.

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III. The Enforcement Paradox: Private Rights and Public Power

Understanding the Division of Authority

Here lies the critical nuance that every consumer must grasp: the FAIR Act does not create a private right of action for "unfair" or "abusive" conduct. Only the New York Attorney General possesses enforcement authority over these newly prohibited categories.

However, the existing private right of action under GBL § 349 for "deceptive" conduct remains fully intact. This creates a powerful dual-track enforcement mechanism:

Enforcement Avenue	Who Can Act	Applicable Conduct
Private Lawsuit (GBL § 349)	Individual consumers	Deceptive acts and practices
Attorney General Enforcement	NYAG exclusively	Unfair, Deceptive, and Abusive acts
Consumer Complaint to NYAG	Any person	All three categories

The Strategic Advantage: Simultaneous Pursuit

A consumer injured by a business practice that is both deceptive and unfair or abusive may pursue parallel remedies:

1. File a private lawsuit under GBL § 349 for the deceptive component, seeking actual damages, treble damages (up to $1,000), and attorney's fees.

2. Simultaneously file a complaint with the Attorney General's Bureau of Consumer Frauds and Protection regarding the unfair and abusive components.

This dual approach is not merely permitted: it is strategically advantageous. An Attorney General investigation can yield evidence, admissions, and Assurances of Discontinuance that substantially bolster a private litigant's case.

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IV. The Attorney General's Prosecutorial Infrastructure: Your Ally in Enforcement

The Bureau of Consumer Frauds and Protection

The Bureau of Consumer Frauds and Protection within the Office of the New York Attorney General serves as the primary enforcement arm for consumer protection violations. This Bureau investigates complaints, conducts industry-wide inquiries, and initiates litigation against violators.

Under the FAIR Act, the Bureau's authority expands dramatically. The Attorney General may now:

• Seek injunctive relief halting ongoing violations
• Obtain restitution for injured consumers, including out-of-state victims
• Pursue civil penalties against repeat or egregious offenders
• Issue subpoenas and conduct depositions during investigations

How AG Investigations Bolster Private Litigation

New York courts have long recognized that Attorney General enforcement actions can provide critical support for private litigants. In Gaidon v. Guardian Life Insurance Co. of America (94 N.Y.2d 330 [1999]), the Court of Appeals affirmed that AG investigations establishing "consumer-oriented" conduct satisfy the threshold requirement for private GBL § 349 claims.

Similarly, Himmelstein v. Matthew Bender & Co. (No. 96 Civ. 8646, S.D.N.Y. 1997) demonstrated how AG findings can provide evidentiary foundations for class action litigation.

When the Attorney General secures an Assurance of Discontinuance: a binding agreement in which a business admits to violations and agrees to cease harmful practices: this document becomes a powerful exhibit in private litigation, establishing both the nature of the conduct and its harmful effects.

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V. Filing Your Complaint: Verified Contact Information

New York Attorney General : Consumer Frauds Bureau

Main Office:
Office of the New York State Attorney General
Bureau of Consumer Frauds and Protection
28 Liberty Street
New York, NY 10005

Consumer Helpline: (800) 771-7755
Online Complaint Portal: ag.ny.gov/consumer-frauds/filing-consumer-complaint

Regional Offices

Region	Address	Phone
Brooklyn	55 Hanson Place, Suite 1080, Brooklyn, NY 11217	(718) 560-2040
Westchester	44 South Broadway, White Plains, NY 10601	(914) 422-8755
Buffalo	Main Place Tower, 350 Main Street, Suite 300A, Buffalo, NY 14202	(716) 853-8404
Albany	The Capitol, Albany, NY 12224	(518) 776-2000

For additional resources on consumer fraud and deceptive practice claims, we encourage you to explore our dedicated practice area page.

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VI. Practical Steps for Consumers

If you believe you have been subjected to unfair, deceptive, or abusive practices:

1. Document Everything: Preserve contracts, receipts, correspondence, advertisements, and any communications with the business.

2. Calculate Your Damages: Quantify the financial harm you have suffered, including direct losses and consequential damages.

3. File a Complaint with the Attorney General: Use the online portal or contact the Consumer Helpline to initiate an investigation.

4. Consult with Experienced Counsel: Determine whether a private lawsuit under GBL § 349 is viable and strategically advisable.

5. Act Promptly: Statutes of limitation apply; delay can extinguish your rights.

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A Note from The Ottley Law Firm, PC

At TOLFPC, we believe that awareness is the first step toward justice. The FAIR Business Practices Act represents a watershed moment for New York consumers: a recognition that protection must extend beyond mere honesty to encompass fundamental fairness.

Important Disclaimer: The Ottley Law Firm, PC does not practice criminal law. If your matter involves potential criminal conduct, we are pleased to provide referrals to qualified criminal defense practitioners. Our practice focuses on personalized, client-centered representation in personal injury, immigration, and landlord-tenant litigation.

If you have questions about your rights under the FAIR Act or believe you have been victimized by unfair, deceptive, or abusive business practices, we invite you to contact us for a consultation.

Get TOLF on your side!

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Roland G. Ottley, Esq.
The Ottley Law Firm, PC
New York, NY