BILL NUMBER: S105
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the general business law, in relation to enacting the
"Consumer and Small business Protection Act"
 
PURPOSE:
To modernize general business law to clearly define prohibited acts and
practices in the conduct of business, trade or commerce or services.
 
SUMMARY OF PROVISIONS:
The Consumer and Small Business Protection Act (CSPA) defines prohibited
acts and practices as any unfair, deceptive or abusive acts or practices
in the conduct of business, trade or commerce or services. The general
business law (GBL) is amended to allow any person who has been injured
by violation of this section to bring an action to enjoin such unlawful
act or practice, an action to recover damages, or both regardless of
whether or not the underlying violation is consumer-oriented or has
public impact. The GBL is further amended to allow persons, if the
prohibited act or practice has caused damage to him/her or others, to
bring an action compliant with article nine of the civil practice law
and rules; an organization may seek the same remedies and damages that a
person.
 
JUSTIFICATION:
New York's business law is outdated and incapable of providing the
protections needed for modern commerce and service. Although New York is
a leader in many areas of consumer protections, it lacks the proper
protections against unfair, deceptive or abusive acts; consequently, our
state lags behind general business statutes in at least 39 other states.
The Consumer and Small Business Protection Act seeks to protect consum-
ers and small businesses against actions that are likely to cause
substantial injury, take advantage of vulnerable consumers and small
businesses, and defends them against practices that are likely to
mislead under reasonable circumstances. This bill also seeks to allow
persons to recover statutory damages of one thousand dollars in addition
to actual and punitive damages. Individual consumers and consumer
attorneys are often reluctant to bring actions against violators due to
the prohibitive costs and time required to bring litigation against
perpetrators; essentially creating an environment where, in practice,
bad actors are free to engage in disreputable conduct. Making attorney's
fees mandatory will increase access to justice for persons seeking legal
action against violators. This bill would bring New York's GBL in line
with most other state statutes by expanding consumer protections to
protect against unfair, deceptive or abusive acts while providing a
significant deterrent to dishonest and deceitful business entities that
seek to take advantage of consumers.
 
LEGISLATIVE HISTORY:
2023-2024: S795 Comrie/ A7138 Weinstein
2021- 2022: S6414 Comrie/ A2495A Niou
2019-2020: A.679C(Niou)/S.2407C(Comrie) - 3rd Reading Both Houses
2018: Senate Bill 8131-A COMRIE / Assembly Bill 9824-A Niou
 
FISCAL IMPLICATIONS:
It is anticipated that the increased civil penalty and widened
protections proposed in the bill would result in an increase in monies
remitted to the State by violators and perpetrators.
 
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become law.