NY Lawmakers Pass Watered-Down Consumer Protections as Session Ends

Albany lawmakers scaled down a consumer protection measure before concluding their annual session and walked away from proposed reforms to the live-event ticket market that could have capped fees.

The changes came after a flurry of last-minute lobbying by business groups, who said the measures would hinder their operations and prompt a surge of lawsuits. Both bills passed in the final days of the scheduled state legislative session, which concluded early Wednesday.

“Obviously, it’s disappointing,” said state Assemblymember Ron Kim, a Democrat from Queens who sponsored an omnibus overhaul to the live-event ticket market.

The bill would have capped fees and let performers yank tickets to their shows from resale sites like StubHub. It was an ambitious proposal that came after a public hearing, but it was introduced just three weeks before the legislative adjournment date. Unless a special session is called, the state Legislature isn’t set to reconvene until January.

Organizations representing artists and musicians backed the bill, saying it would give them greater control over the cost of attending their shows. Ticketmaster, which controls much of the primary market for live-event tickets, said the legislation would protect fans from “predatory resale practices.” Resale tickets often sell for higher prices than tickets sold directly by venues and performers, especially when for events in high demand.

Ticket brokers and resellers like StubHub said the measure would hurt their business. They took advantage of the short timeframe and convinced legislative leaders to instead approve a one-year extension of the current law. New York repealed most restrictions on ticket reselling in 2007, and the law must be reauthorized every few years.

“This is good news because it does give us a year to collectively join together and come to the table,” said Dana McLean, executive director of the Coalition for Ticket Fairness, which advocates for ticket brokers and resellers.

Kim said his omnibus bill fell victim to the legislative clock and promised to continue working on the issue. The bill’s coauthor, state Sen. James Skoufis, an Orange County Democrat, said he had “nothing complimentary to say about the straight extender — the exact preferred outcome of scalpers.”

“I look forward to revisiting this issue in an even more aggressive manner next year,” he said.

Gov. Kathy Hochul signed the bill Wednesday.

A broader consumer protection bill backed by New York Attorney General Letitia James passed along party lines — after significant amendments. James, also a Democrat, proposed expanding the state’s consumer protection law to let consumers sue over “unfair” and “abusive” business practices — and not just the “deceptive” practices covered under current law.

The update was needed because businesses “don’t usually write down the lies,” said Ariana Lindermayer, staff attorney at the nonprofit Mobilization for Justice, a public interest legal group.

The change would have brought New York in line with federal statutes and the legal standard in more than three dozen other states, according to state Sen. Leroy Comrie, a Queens Democrat who sponsored the legislation.

After working on the bill for several years, Comrie said, President Donald Trump’s moves to dismantle federal watchdog agencies this year made action all the more important. Trump moved to shut down the Consumer Financial Protection Bureau and fired two Democratic commissioners on the Federal Trade Commission.

“As you know, New York is a state that has a lot of immigrants that are trying to move up, that are trying to purchase homes or buy homes,” Comrie said. “They’ve been deluged by unfair business practices.”

Business groups objected to the legislation, arguing the expanded protections would lead to a deluge of litigation by consumers. At their urging, James and the bill’s sponsors agreed to amendments that only allow the attorney general’s office to bring a case under the new consumer protection standards. Individual consumers didn’t win any expanded rights to go after companies themselves.

Kathryn Wylde, president of the business group Partnership for New York City, said she appreciated the sponsor’s flexibility.

“The enforcement of a law shouldn’t be left up to trial attorneys who go out and round up clients and then sue a business,” she said. “We trust the attorney general will enforce it prudently.”

Republicans said during floor debates they were not happy with James having that discretion.

“Lawfare is bad,” said State Sen. Mark Walczyk, a Republican from Watertown. “This bill will give broad powers and allow the attorney general to pick winners and losers in business.”

James’s office said it follows the facts when deciding whether to bring a case. In a statement, she said the bill “will close loopholes that make it easy for New Yorkers to be cheated out of their time and hard-earned money.”

Lindermayer with Mobilization for Justice said the amendments were “incredibly disappointing” and meant consumers in New Jersey have more resources available to them than those in New York. She said it is not reasonable to expect the attorney general’s office to devote resources to individual consumers who say they have been ripped off.

“Consumer protection didn’t get done this year,” she said. “This is a moment when New Yorkers really needed their state leadership to step up and step up for them.”

Assemblymember Micah Lasher, a Democrat from the Upper West Side who sponsors the bill, defended the amendments, which he helped negotiate.

“The bill came under intense and in my view bad-faith attack from a wide array of corporate interests,” he said. “We made a practical compromise in order to get something meaningful done. That doesn’t mean there isn’t more to do.”

A Hochul spokesperson said she would review the bill.

Story by Jimmy Vielkind/New York Public News Network
Jimmy Vielkind covers how state government and politics affect people throughout New York

Image Credit:  Jason Smith/WRVO News (file photo)