On December 19, 2025, Governor Kathy Hochul signed the Fostering Affordability and Integrity through Reasonable Business Practices Act (“FAIR Business Practices Act” or “the Act”) into law, marking the first update to New York’s consumer protection law in 45 years and a significant expansion of the New York Attorney General’s enforcement power. As discussed in our previous client alert on the legislation, the new law expands liability under New York General Business Law § 349 beyond “deceptive” acts to include both “unfair” and “abusive” practices. However, the signed version of the law does include some significant differences from the originally passed legislation. While the version passed by the legislature eliminated the requirement that practices be “consumer-oriented” to be actionable, Governor Hochul’s approval memorandum referenced an agreement with the legislature to amend this provision and ensure that the law “does not override existing case law concerning the ‘consumer-oriented standard.’”1 Additionally, the law includes amendments to clarify that only the New York Attorney General has authority to bring claims for unfair or abusive acts; the private right of action applies only to deceptive practices and acts.2
With the signing of this bill into law, we may see an expansion in both the volume and the scope of the New York Attorney General’s consumer protection litigation and enforcement in 2026. In a press release celebrating the signing of the law, Attorney General Letitia James provided examples of possible unfair and abusive business acts. Certain billing practices by health care companies and nursing homes, acts that take advantage of New Yorkers with limited English proficiency, and practices that allegedly obscure pricing information and fees may all fall into this “unfair” category. We expect to see enforcement actions focused on, among other things, difficulty canceling subscription services and data collection and related issues.3 We may also see attempts to punish large firms for practices that do not fit into recognized antitrust causes of action but that nonetheless are allegedly unfair in the Attorney General’s view. Some state attorneys general in other jurisdictions have also explored the application of consumer protection statutes to new technologies, such as artificial intelligence (“AI”), assessing circumstances in which AI conduct could be designated “unfair.”
The Act will take effect on February 17, 2026, 60 days after being signed into law. As states like New York ramp up their enforcement efforts, our State Attorneys General Practice is well-positioned to assist clients in navigating the practical, legal and reputational challenges that come with an ever-changing consumer protection landscape.
