New York enterprise teams are blasting Lawyer Common Tish James for a pro-consumer push that they concern could be a legislative misfire — boosting grasping legal professionals and unleashing “legal 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 would open up small companies to frivolous lawsuits and authorized threats.
“The so-called FAIR Act would be anything but fair to New York’s business community, especially Main Street businesses,” mentioned Tom Stebbins, government director of the Lawsuit Reform Alliance of NY.
“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 mentioned. “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 synthetic intelligence-based schemes, on-line phishing scams and information breaches.
It additionally takes intention at scholar mortgage providers that steer debtors into dearer reimbursement plans, unscrupulous automobile sellers, shady nursing houses that sue kinfolk of deceased residents for unpaid payments — and medical insurance firms that use lengthy lists of in-network medical doctors 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 “excess tort costs” already saddle New Yorkers with $61.8 billion in pointless authorized payments.
Ashley Ranslow, New York state director for the Nationwide Federation of Impartial Companies, mentioned James’ proposal “would make it simpler for legal professionals to shake down small companies with imprecise authorized 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 mentioned.
Justin Wilcox, government director of Upstate United, mentioned the invoice has “vague definitions” that legal professionals will exploit for revenue, not justice.
Enterprise Council lobbyist Chelsea Lemon mentioned Gov. Kathy Hochul and lawmakers must reject the invoice if they’re “truly serious about addressing affordability.”
James had no fast touch upon backlash from enterprise pursuits.
However throughout a press convention in March, she mentioned the laws was essential 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 mentioned.
“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.”
Her workplace on Sunday supplied statements from the Pupil Borrower Safety Middle and the Small Enterprise Majority who assist the FAIR Act.
Winston Berkman-Breen, authorized director on the Pupil Borrower Safety Middle mentioned: “Because the Trump Administration guts federal shopper safety businesses and monetary regulators, massive 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 reasonably priced choices simply because the federal authorities is getting 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 Enterprise Majority mentioned: “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 authorized hearth herself of late.
President Trump’s Justice Division final week launched a legal probe into mortgage fraud claims towards her.
Taxpayers additionally could possibly be on the hook for authorized payments from the investigation into her actual property dealings, in keeping with the state funds.
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, “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 actual property agency.
