Senate approves update to General Business Law expanding 'unfair' and 'abusive' practices; debate centered on attorney general powers

The New York State Senate on June 12 approved Senate print 84-16, a bill that amends the General Business Law to add definitions of "unfair" and "abusive" practices and to broaden enforcement authority for the attorney general. The measure passed after extended floor debate, recorded as Ayes 37, Nays 22.

Supporters, led on the floor by the bill sponsor, said the change updates a statute they described as last revised in 1980 and gives the attorney general authority to address modern consumer harms. "This bill has not been updated since 1980," the sponsor said on the floor, and framed the measure as a tool to address deceptive sales tactics, junk fees and other practices that can leave consumers — especially new homeowners and immigrants — without an effective remedy.

Backers said the bill adopts language that many states and federal regulators use to define harm. "This bill is going to define acts or practices as unfair where it causes or is likely to cause substantial injury, which is not reasonably avoidable and is not outweighed by the countervailing benefits to the consumer or to competition," the sponsor said during the debate.

Opponents raised repeated concerns about the breadth and vagueness of the terms and about the discretion the attorney general would exercise. "I have serious reservations and concerns when it comes to vague language," said Senator Martins, who urged further limits and safeguards before granting the office broader unilateral authority. Other senators argued the bill could expose businesses — including nonprofits and out-of-state companies that sell to New Yorkers online — to enforcement actions without a clear, preexisting showing of harm.

Lawmakers pressed the sponsor on specific points: how the bill distinguishes deceptive, unfair and abusive conduct; whether the attorney general could file actions based only on a staff assessment rather than a complaint; and where suits would be venued. The sponsor repeatedly said the bill mirrors language used in 47 other states and in federal precedent and that courts, not the attorney general, make the ultimate determination in any enforcement action. "The final decision maker will be the court," the sponsor said, adding that the Attorney General's Office would focus on substantial, provable cases.

Several senators asked whether the attorney general could bring an action preemptively if she "anticipates" an unlawful practice, and whether the office could subpoena or enjoin activity before a harm had occurred. The sponsor noted that preliminary relief and injunctions are existing tools and said the office would not pursue frivolous lawsuits.

Opponents warned the statute could be used as a tool of "lawfare." Senator Helming said the bill risks driving businesses from the state and would add regulatory burdens at a time insurers and other firms are already reducing operations in New York. Senator Walzick said the expansion to cover business-to-business complaints as well as consumer claims raised new questions about when the attorney general should intervene.

The floor debate included multiple exchanges about jurisdiction: the sponsor said the bill would allow actions where companies cause harm to New York residents, including cases involving out-of-state firms selling online, but stressed that any enforcement would still require a demonstrable injury and ultimately be decided by courts.

After roughly six hours of debate across multiple senators, the Senate voted to pass the bill. The sponsor framed the legislation as a modernization of consumer protections and said it would give the state tools to recover money for harmed consumers and to enjoin ongoing harms.

How the law will be implemented and how broadly the attorney general will use the new authority will depend on future enforcement decisions and on how courts interpret the definitions of "unfair" and "abusive."