What Insurers Should Expect from 2026 Amendments to N.Y. Gen. B.L. § 349

On February 17, 2026, the Fostering Affordability and Integrity Through Reasonable Business Practices Act (the “FAIR Business Practices Act”) took effect after New York Governor Kathy Hochul signed it into law on December 19, 2025. The FAIR Business Practices Act makes material changes to the consumer protection statute, New York General Business Law § 349, though the precise scope of the impact, including any impact on insurers, remains to be seen.

Historically, N.Y. Gen. B.L. § 349 only prohibited “deceptive” acts or practices in the conduct of any business, trade, or commerce, but the new formulation expands its restriction to “unfair” and “abusive” practices. “Unfair” and “abusive” practices are defined within the statute and, in the case of “unfair practices” in reference to the federal trade commission act. The amendments also extend the New York Attorney General’s enforcement reach to encompass practices by out-of-state persons who conduct business or provide services within the state, and in-state persons who conduct business or provide services outside of New York. Despite these expansions to state enforcement, the private right of action under § 349 remains limited to “deceptive” business practices only. 

Perhaps the most noteworthy aspect for insurers is the status of the “consumer-oriented” standard, which, as discussed below, is incidentally an aspect of § 349 that remains in flux. New York courts historically adopted the “consumer-oriented” standard to limit § 349’s application to conduct with a broad impact on consumers. This adoption meant it generally did not apply to private contract disputes such as for insurance coverage. The amendments to § 349 all but eliminate the use of this standard in attorney general actions, providing that “[a]n act or practice made unlawful by this section is actionable by the attorney general regardless of whether or not that act or practice is consumer-oriented.” Notably, this new doctrinal override is limited to actions by the attorney general, not private causes of action, as the statute contains no similar language for private actions.

This nuance is consistent with the professed intent for the FAIR Business Practices Act amendments, expressed in the newly added § 348: to “eliminate[] atextual exceptions imposed by courts over the last five decades that have limited the attorney general’s power to enforce the statute to acts that are ‘consumer oriented.’” (emphasis added). A memorandum submitted in support of the amendments in accordance with New York Assembly Rule III confirmed this non-applicability, stating the amendments “do[] not disturb existing caselaw concerning the application of the consumer-oriented doctrine to the private right of action . . . . It simply provides that this doctrine no longer applies to Attorney General enforcements.” In an Approval Memorandum signed in tandem with the legislation, Governor Hochul specified the need for changes to ensure “the bill does not override existing case law concerning the ‘consumer-oriented standard.’” She indicated her signature was premised on having reached an agreement with the Legislature to enact such changes. It remains to be seen what further amendments, if any, will stem from this apparent agreement.

As it stands, insurers should note that under § 349, while private causes of action remain essentially unchanged, the Legislature has anointed the Attorney General with new authority to pursue enforcement against purported unfair, deceptive, and abusive acts or practices without, at least for the time-being, restraint by the historical “consumer-oriented” test.