Additions to Deceptive Acts or Practices (S.2407-B/A.679-B) | 2019

May 29th, 2019

AN ACT to amend the general business law, in relation to standing for persons affected by prohibited or unlawful business practices

S. 2407-B (Comrie) / A. 679-B (Niou)

MEMORANDUM IN OPPOSITION

Unshackle Upstate, a non-partisan, pro-taxpayer, pro-economic growth, education and advocacy coalition made up of Upstate business and trade organizations, opposes this legislation which would expand the consumer protection deceptive acts and practices section of the general business law.

The bill adds the terms “unfair” and “abusive” to Section 349 of the General Business Law. These subjective terms will open businesses large and small to significant risk of litigation, putting business owners in the unreasonable position of determining if their customers physical or mental wellness, their reading capabilities and the language they speak.

This legislation also increases the damages that plaintiffs can seek by creating a statutory minimum of $2,000, as well as attorney fees. These increased fees paired with the broad additions to the General Business Law will incentivize meritless and costly lawsuits on New York employers.

Current law already protects consumers from deceptive and unlawful business practices. This legislation adds vague terms and increased minimum damage penalties that will do nothing to protect consumers. Instead, the net result will be increased burdens for businesses and increased cost of goods and services.

Unshackle Upstate has consistently advocated for policies that improve our state’s business climate. This legislation will add to the challenges facing businesses across the state and make New York less economically competitive.

For these reasons, we oppose the enactment of this legislation.