S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    105
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by Sens. COMRIE, BAILEY, BRISPORT, BROUK, CLEARE, FERNANDEZ,
   GIANARIS, GONZALEZ, GOUNARDES, HARCKHAM, HINCHEY, HOYLMAN-SIGAL, JACK-
   SON, KAVANAGH, KRUEGER,  LIU,  MAY,  MAYER,  MYRIE,  PALUMBO,  PARKER,
   RAMOS,  RIVERA,  RYAN S, SALAZAR, SANDERS, SEPULVEDA, SERRANO, SKOUFIS
   -- read twice and ordered printed, and when printed to be committed to
   the Committee on Consumer Protection
 
 AN ACT to amend the general business law, in relation  to  enacting  the
   "Consumer and Small business Protection Act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as  the  "Consumer
 and Small business Protection Act (CSPA)".
   §  2.  Legislative  findings and intent. The Legislature declares that
 the State has a responsibility to  protect  individuals  and  businesses
 within  the  State  from unfair and abusive business acts and practices.
 The Legislature further declares that the  State's  law,  which  guarded
 only  against  deceptive  business acts and practices, has been insuffi-
 cient to meet this responsibility and has become out of  date  as  other
 states'  laws provide far greater protections. Consumers and small busi-
 nesses have long been vulnerable to unscrupulous business practices that
 are unfair and abusive without being expressly deceptive. The State must
 not allow bad actors to peddle predatory products and services  as  long
 as  they  are clever enough not to get caught in a lie. To that end, and
 to better level the playing field for  the  State's  many  honest  busi-
 nesses,  this  legislation defines unfair and abusive acts and practices
 expansively.
   The State must also ensure that this  protection  covers  small  busi-
 nesses, which are frequent targets of predatory loans and other forms of
 exploitation,  along  with  all  consumer transactions. This legislation
 therefore rejects the limitation, imposed  by  courts,  that  prohibited

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00161-01-5
 S. 105                              2
 
 conduct  be  "consumer oriented," have an impact on the public at large,
 or be part of a broader pattern.  Consumers  and  small  businesses  are
 entitled  to  redress  whenever they are harmed by deceptive, unfair, or
 abusive conduct.
   Finally, for any of these protections to be meaningful, the State must
 ensure  that  the  remedies  for prohibited conduct provide an effective
 deterrent. This legislation therefore updates the statutory damages  for
 violations for the first time in decades, from $50 to $1,000, and allows
 meaningful  punitive  damages  for  particularly egregious behavior. The
 Legislature recognizes that unfair,  deceptive,  and  abusive  practices
 have a particular impact on poor individuals, people of color, and those
 affected  by  natural  disasters  and  health emergencies, including the
 COVID-19 pandemic. For this reason, the State must ensure  that  limited
 resources  not  prevent  individuals  and  small businesses from seeking
 remedies. This legislation therefore opens access to justice  by  making
 recovery  of  attorney's  fees  mandatory for a prevailing plaintiff and
 authorizing class actions.
   § 3. Section 349 of the general business law, as added by  chapter  43
 of  the  laws  of 1970, subdivision (h) as amended by chapter 157 of the
 laws of 1984, and subdivision (j) as added by section 6 of  part  HH  of
 chapter 55 of the laws of 2014, is amended to read as follows:
   §  349.  [Deceptive  acts] PROHIBITED ACTS and practices unlawful. (a)
 [Deceptive] THIS SECTION PROHIBITS ANY UNFAIR, DECEPTIVE OR ABUSIVE acts
 or practices in the conduct of any business, trade or commerce or in the
 furnishing of any service [in this state are hereby declared unlawful].
   (1) FOR THE PURPOSES OF THIS SECTION, AN ACT  OR  PRACTICE  IS  UNFAIR
 WHEN  IT  CAUSES OR IS LIKELY TO CAUSE SUBSTANTIAL INJURY, THE INJURY IS
 NOT REASONABLY AVOIDABLE, AND THE INJURY IS NOT OUTWEIGHED  BY  COUNTER-
 VAILING BENEFITS.
   (2)  FOR THE PURPOSES OF THIS SECTION, AN ACT OR PRACTICE IS DECEPTIVE
 WHEN THE ACT OR PRACTICE MISLEADS OR IS LIKELY TO MISLEAD A  PERSON  AND
 THE PERSON'S INTERPRETATION IS REASONABLE UNDER THE CIRCUMSTANCES.
   (3)  FOR  THE  PURPOSES OF THIS SECTION, AN ACT OR PRACTICE IS ABUSIVE
 WHEN:
   (I) IT MATERIALLY INTERFERES WITH THE ABILITY OF A  PERSON  TO  UNDER-
 STAND A TERM OR CONDITION OF A PRODUCT OR SERVICE; OR
   (II) IT TAKES UNREASONABLE ADVANTAGE OF:
   (A)  A PERSON'S LACK OF UNDERSTANDING OF THE MATERIAL RISKS, COSTS, OR
 CONDITIONS OF THE PRODUCT OR SERVICE;
   (B) A PERSON'S INABILITY TO PROTECT SUCH PERSON'S INTERESTS IN SELECT-
 ING OR USING A PRODUCT OR SERVICE; OR
   (C) A PERSON'S REASONABLE RELIANCE ON A PERSON COVERED BY THIS SECTION
 TO ACT IN SUCH PERSON'S INTERESTS.
   (b) Whenever the attorney general shall believe from  evidence  satis-
 factory  to  [him]  SUCH  ATTORNEY GENERAL that any person, firm, corpo-
 ration or association or agent or employee thereof has engaged in or  is
 about  to  engage  in  any of the acts or practices stated to be UNFAIR,
 unlawful [he], DECEPTIVE OR ABUSIVE, SUCH ATTORNEY GENERAL may bring  an
 action  in the name and on behalf of the people of the state of New York
 to enjoin such unlawful acts or practices and to obtain  restitution  of
 any  moneys  or  property  obtained  directly  or indirectly by any such
 unlawful acts or practices. In such action  preliminary  relief  may  be
 granted  under  article sixty-three of the civil practice law and rules.
 SUCH ACTIONS MAY BE BROUGHT REGARDLESS OF WHETHER OR NOT THE  UNDERLYING
 VIOLATION  IS DIRECTED AT INDIVIDUALS OR BUSINESSES, IS CONSUMER-ORIENT-
 S. 105                              3
 
 ED, OR INVOLVES  THE  OFFERING  OF  GOODS,  SERVICES,  OR  PROPERTY  FOR
 PERSONAL, FAMILY OR HOUSEHOLD PURPOSES.
   (c) Before any violation of this section is sought to be enjoined, the
 attorney  general shall be required to give the person against whom such
 proceeding is contemplated notice by certified mail and  an  opportunity
 to show in writing within five business days after receipt of notice why
 proceedings  should  not be instituted against [him] SUCH PERSON, unless
 the attorney general shall find, in any case in which [he] SUCH ATTORNEY
 GENERAL seeks preliminary relief, that to give such notice and  opportu-
 nity is not in the public interest.
   (d)  In any such action it shall be a complete defense that the act or
 practice is, or if in interstate  commerce  would  be,  subject  to  and
 complies  with  the  rules and regulations of, and the statutes adminis-
 tered by, the federal trade commission or any official department, divi-
 sion, commission or agency of the United States  as  such  rules,  regu-
 lations  or  statutes are interpreted by the federal trade commission or
 such department, division, commission or agency or the federal courts.
   (e) Nothing in this section shall apply to  any  television  or  radio
 broadcasting  station  or  to  any  publisher or printer of a newspaper,
 magazine  or  other  form  of  printed  advertising,   who   broadcasts,
 publishes, or prints the advertisement.
   (f) In connection with any proposed proceeding under this section, the
 attorney general is authorized to take proof and make a determination of
 the  relevant facts, and to issue subpoenas in accordance with the civil
 practice law and rules.
   (g) This section shall apply to all [deceptive] PROHIBITED  acts  [or]
 AND  practices  [declared to be unlawful], whether or not subject to any
 other law of this state, and shall not supersede, amend  or  repeal  any
 other  law  of this state under which the attorney general is authorized
 to take any action or conduct any inquiry.
   (h) (1) In addition to the right of action  granted  to  the  attorney
 general  pursuant  to  this  section, any person who has been injured by
 reason of any violation of this section may bring  an  action  in  [his]
 SUCH  PERSON'S  own  name  to  enjoin  such unlawful act or practice, an
 action to recover [his actual damages or  fifty  dollars,  whichever  is
 greater,  or  both  such actions] ONE THOUSAND DOLLARS AND SUCH PERSON'S
 ACTUAL DAMAGES, IF ANY, OR  BOTH  SUCH  ACTIONS.  SUCH  ACTIONS  MAY  BE
 BROUGHT REGARDLESS OF WHETHER OR NOT THE UNDERLYING VIOLATION IS CONSUM-
 ER-ORIENTED,  HAS  A  PUBLIC  IMPACT  OR INVOLVES THE OFFERING OF GOODS,
 SERVICES OR PROPERTY FOR PERSONAL, FAMILY OR HOUSEHOLD  PURPOSES.    The
 court  may,  in  its  discretion,  increase  the award of damages [to an
 amount not to exceed three times the actual damages up to  one  thousand
 dollars,]  if  the  court  finds  the  defendant  willfully or knowingly
 violated this section. The court [may] SHALL award reasonable attorney's
 fees AND COSTS to a prevailing plaintiff.
   [(j)] (I) FOR PURPOSES OF THIS SECTION, A "PERSON" IS  DEFINED  AS  AN
 INDIVIDUAL,  FIRM,  CORPORATION,  PARTNERSHIP, COOPERATIVE, ASSOCIATION,
 COALITION OR ANY OTHER ORGANIZATION'S LEGAL ENTITY, OR GROUP OF INDIVID-
 UALS HOWEVER ORGANIZED;
   (II) FOR PURPOSES OF THIS SECTION "NON-PROFIT ORGANIZATION" IS DEFINED
 AS AN ORGANIZATION THAT IS (A) NOT AN INDIVIDUAL;  AND  (B)  IS  NEITHER
 ORGANIZED NOR OPERATING IN WHOLE, OR IN SIGNIFICANT PART, FOR PROFIT;
   (III)  GIVEN THE REMEDIAL NATURE OF THIS SECTION, STANDING TO BRING AN
 ACTION UNDER THIS SECTION, INCLUDING BUT NOT LIMITED  TO  ORGANIZATIONAL
 STANDING  AND  THIRD-PARTY  STANDING,  SHALL  BE LIBERALLY CONSTRUED AND
 SHALL BE AVAILABLE TO THE FULLEST EXTENT OTHERWISE PERMITTED BY LAW.
 S. 105                              4
 
   (2) ANY INDIVIDUAL OR NON-PROFIT ORGANIZATION  ENTITLED  TO  BRING  AN
 ACTION  UNDER  THIS  ARTICLE  MAY, IF THE PROHIBITED ACT OR PRACTICE HAS
 CAUSED DAMAGE TO OTHERS SIMILARLY SITUATED, BRING AN ACTION ON BEHALF OF
 SUCH INDIVIDUAL OR NON-PROFIT ORGANIZATION AND SUCH  OTHERS  TO  RECOVER
 ACTUAL,  STATUTORY  AND/OR  PUNITIVE  DAMAGES  OR OBTAIN OTHER RELIEF AS
 PROVIDED FOR IN THIS ARTICLE. STATUTORY DAMAGES UNDER THIS SECTION  WILL
 BE  LIMITED  TO  (I)  SUCH  AMOUNT  FOR EACH NAMED PLAINTIFF AS COULD BE
 RECOVERED UNDER PARAGRAPH ONE OF THIS SUBDIVISION; AND (II) SUCH  AMOUNT
 AS  THE  COURT MAY ALLOW FOR ALL OTHER CLASS MEMBERS WITHOUT REGARD TO A
 MINIMUM INDIVIDUAL RECOVERY, NOT TO EXCEED THE  LESSER  OF  ONE  MILLION
 DOLLARS  OR  TWO PER CENTUM OF THE NET WORTH OF THE BUSINESS.  THUS, ANY
 ACTION BROUGHT UNDER THIS SUBDIVISION SHALL COMPLY WITH ARTICLE NINE  OF
 THE CIVIL PRACTICE LAW AND RULES.
   (3)  A NON-PROFIT ORGANIZATION MAY BRING AN ACTION UNDER THIS SECTION,
 ON BEHALF OF ITSELF OR ANY OF ITS MEMBERS, OR ON BEHALF OF THOSE MEMBERS
 OF THE GENERAL PUBLIC WHO HAVE BEEN INJURED BY REASON OF  ANY  VIOLATION
 OF  THIS SECTION, INCLUDING A VIOLATION INVOLVING GOODS OR SERVICES THAT
 THE NON-PROFIT ORGANIZATION PURCHASED OR RECEIVED IN ORDER  TO  TEST  OR
 EVALUATE  QUALITIES PERTAINING TO USE FOR PERSONAL, HOUSEHOLD, OR FAMILY
 PURPOSES.   A NON-PROFIT ORGANIZATION MAY SEEK  THE  SAME  REMEDIES  AND
 DAMAGES THAT A PERSON MAY SEEK UNDER PARAGRAPH ONE OF THIS SUBDIVISION.
   (4) BEFORE ANY VIOLATION OF THIS SECTION IS SOUGHT TO BE ENJOINED, THE
 PERSON  BRINGING THE ACTION SHALL BE REQUIRED TO GIVE THE PERSON AGAINST
 WHOM SUCH ACTION IS CONTEMPLATED NOTICE BY CERTIFIED MAIL, TO THE  PLACE
 WHERE  THE  TRANSACTION  OCCURRED  OR TO THE PRINCIPAL PLACE OF BUSINESS
 WITHIN THE STATE OF THE PERSON AGAINST WHOM SUCH ACTION IS CONTEMPLATED,
 AND AN OPPORTUNITY TO SHOW IN WRITING WITHIN  TEN  BUSINESS  DAYS  AFTER
 MAILING  OF NOTICE WHY PROCEEDINGS SHOULD NOT BE INSTITUTED AGAINST SUCH
 PERSON, UNLESS, IN ANY  CASE  IN  WHICH  THE  PERSON  SEEKS  PRELIMINARY
 RELIEF,  THE GIVING OF SUCH NOTICE AND OPPORTUNITY WOULD CAUSE IMMEDIATE
 AND IRREPARABLE INJURY, LOSS OR DAMAGES.
   (I) Notwithstanding any law to the contrary, all monies  recovered  or
 obtained  under  this  article  by  a  state agency or state official or
 employee acting in their official capacity shall be subject to  subdivi-
 sion eleven of section four of the state finance law.
   (J)  THIS  SECTION  IS  INTENDED  TO EXPAND AND NOT TAKE AWAY EXISTING
 CONSUMER RIGHTS.
   § 4. This act shall take effect on the sixtieth  day  after  it  shall
 have become a law.