Business organisations in New York are criticising Attorney General Tish James for a pro-consumer campaign that they believe could backfire legislatively by empowering avaricious attorneys and causing “legal shakedowns.”
Critics claim that James’ FAIR Business Practices Act will expose small firms to pointless lawsuits and legal threats while strengthening consumer rights to combat unscrupulous practices like deed theft, trash fees, and difficult-to-cancel subscriptions.
According to Tom Stebbins, executive director of the Lawsuit Reform Alliance of NY, “The so-called FAIR Act would be anything but fair to New York’s business community, especially Main Street businesses.”
“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 stated. “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 businesses involved in data breaches, online phishing scams, and artificial intelligence-based schemes.
Additionally, it targets dishonest car dealers, dubious nursing homes that sue the families of deceased residents for unpaid bills, student loan services that pressure borrowers into more costly repayment plans, and health insurance companies that use lengthy lists of in-network doctors who later refuse to take patients’ insurance.
Business groups, however, are concerned that it will impose an unforeseen burden on small enterprises, pointing to a study that shows “excess tort costs” already cost New Yorkers $61.8 billion in needless legal bills.
The National Federation of Independent firms’ state director for New York, Ashley Ranslow, stated that James’ plan “would make it easier for lawyers to shake down small businesses with vague legal threats.”
Read Also: DOJ Launches Criminal Probe into NY Attorney General Letitia James
“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 stated.
According to Upstate United executive director Justin Wilcox, the measure contains “vague definitions” that attorneys will take advantage of for financial gain rather than for the sake of justice.
Chelsea Lemon, a lobbyist for the Business Council, stated that if lawmakers and Governor Kathy Hochul are “genuinely serious about addressing affordability,” they must reject the plan.
However, at a March press conference, she criticised the Trump administration and stated that the law was required.
Read Also: ‘Retaliation’: Letitia James Breaks Silence on Criminal Allegations
“At a time when the federal government is making life harder, we want to make life easier for New Yorkers,” James stated.
“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.”
Statements supporting the FAIR Act from the Student Borrower Protection Centre and the Small Business Majority were sent by her office on Sunday.
“Big businesses are getting a free pass to rip off working families and everyday New Yorkers as the Trump Administration guts federal consumer protection agencies and financial regulators,” stated Winston Berkman-Breen, legal director of the Student Borrower Protection Centre.
As the federal government prepares to confiscate federal benefits and wages from borrowers who fall behind on their payments, abusive practices by student loan servicers are denying students access to reasonable solutions.
“New Yorkers need the state to pass the FAIR Business Practices Act.”
Lindsey Vigoda, New York Director of Small Business Majority stated that, “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 recently been the target of legal and political criticism.
Last Monday, the Justice Department of President Trump opened a criminal investigation into her alleged involvement in mortgage fraud.
According to the state budget, taxpayers may also be responsible for paying legal fees resulting from the probe into her real estate activities.
Because she filed civil fraud charges against him and his business, the Trump Organisation, James called the accusations “baseless” and said the federal investigation was part of the president’s “revenge tour.”
When James began her investigation against Trump in 2019, she famously declared, “No one is above the law.” The probe resulted in a $454 million judgement against Trump and his real estate company.
