Politico: Consumer Shield

By: Nick Reisman

State Attorney General Letitia James is pressing state lawmakers to take up a consumer protection measure before the legislative session concludes on June 12.

The provision is meant to update a 1970 law that bans “deceptive business acts and practices.” James wants to amend the statute to address modern-day concerns like making it easier to cancel subscriptions, repay loans and better understand pricing plans.

James’ team has been quietly lobbying for the proposal, which takes aim at junk fees, student loan rates, home mortgage practices and car payments. Her office has distributed a one-page document to legislators highlighting the measure’s potential benefits.

Explicit in the effort for the state-level consumer regulations has been the weakening of federal consumer protections. The push comes as the Trump administration moved to gut the U.S. Consumer Financial Protection Bureau, and the bureau’s former head, Lina Khan, has backed James’ proposal.

Business advocacy groups are opposed and warn the measure would fuel unwarranted lawsuits.

“The so-called FAIR Act would be anything but fair to New York’s business community, especially Main Street businesses,” said Tom Stebbins, the executive director of the Lawsuit Reform Alliance. “It strips away long standing 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.”