Business organizations in New York are expressing frustration with Attorney General Tish James, warning that her approach could lead to a legislative misstep. Critics argue it favors greedy lawyers and results in a “legal shakedown.”
James’ Fair Business Practice Act aims to address issues like theft, hidden fees, and hard-to-cancel subscriptions. However, opponents claim it could expose small businesses to unnecessary lawsuits and threats.
“This so-called fairness is unlikely to benefit Main Street businesses,” said Tom Stevins, executive director of the New York Litigation Reform Alliance.
“It eliminates years of legal protections, including ensuring that claims are genuinely consumer-oriented and that plaintiffs have valid reasons to sue. Instead, it creates an environment ripe for abuse,” Stevins noted.
“The bill effectively allows profit-driven law firms to send letters demanding pre-suit settlements for damages and fees,” he added. “This could lead to a cottage industry of legal intimidation targeting small businesses, which typically lack the resources to defend themselves, rather than going after actual fraud.”
The ACT is focused on businesses involved in AI scams, phishing, and data breaches.
It also targets issues like student loan services funneling borrowers into pricier repayment plans and unscrupulous car dealers. Other areas of concern include nursing homes that pursue unpaid bills from deceased residents’ families and health insurance companies with long lists of doctors that don’t accept certain insurances.
Business advocates fear that this legislation could inadvertently burden small businesses, referencing investigations into “excessive tort costs” totaling $61.8 billion in unnecessary expenses.
Ashley Lancelow, New York State Director of the Federation of Independent Businesses, stated that James’ proposal would make it easier for lawyers to intimidate small businesses with vague legal threats.
“Officials should focus on reducing costs and supporting small businesses, rather than making it easier for wealthy lawyers to challenge them without clear justification,” she said.
Justin Wilcox, executive director of Upstate United, criticized the bill’s “ambiguous definition,” arguing it would favor profit over justice.
Business Council lobbyist Chelsea Lemon suggested that Governor Kathy Hochul and lawmakers should reject the bill if they genuinely care about affordability.
James hasn’t publicly responded to the backlash from the business community.
However, at a March press conference, she emphasized the necessity of the law while taking shots at the Trump administration.
“When the federal government complicates life, we aim to simplify it for New Yorkers,” James remarked.
“The Fair Business Practices Act closes loopholes that allow New Yorkers to be defrauded, and I look forward to enforcing the law alongside my state partners, ensuring that consumer protection is prioritized,” she stated.
On Sunday, her office shared statements from a student borrower protection center and a majority of small businesses endorsing fair practices.
Recently, James has faced intense scrutiny, as former President Trump’s Justice Department initiated a criminal probe into mortgage fraud allegations against her.
Taxpayers may also be on the hook for legal expenses stemming from an investigation into her real estate dealings, according to the state budget.
James labeled the allegations as “largely unfounded,” asserting that the federal inquiry is part of a “revenge tour” by the former president.
Since kicking off her investigation into Trump in 2019, James has gained notoriety for stating that “no one is above the law.”
