Authorizes the attorney general to bring an action to enjoin unfair practices of proprietary institutions of higher education; defines unlawful unfair acts or practices.
STATE OF NEW YORK
________________________________________________________________________
493
2023-2024 Regular Sessions
IN ASSEMBLY
January 9, 2023
___________
Introduced by M. of A. EPSTEIN -- read once and referred to the Commit-
tee on Consumer Affairs and Protection
AN ACT to amend the general business law, in relation to unfair prac-
tices of proprietary institutions of higher education
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivisions (a) and (g) of section 349 of the general
2 business law, as added by chapter 43 of the laws of 1970, are amended to
3 read as follows:
4 (a) Deceptive or unfair acts or practices in the conduct of any busi-
5 ness, trade or commerce or in the furnishing of any service in this
6 state are hereby declared unlawful.
7 (g) This section shall apply to all deceptive or unfair acts or prac-
8 tices declared to be unlawful, whether or not subject to any other law
9 of this state, and shall not supersede, amend or repeal any other law of
10 this state under which the attorney general is authorized to take any
11 action or conduct any inquiry.
12 § 2. The general business law is amended by adding a new section 349-g
13 to read as follows:
14 § 349-g. Proprietary institutions of higher education; unlawful unfair
15 practices. 1. For purposes of this section, "proprietary institution"
16 shall be defined as any licensed private career school, certified
17 English as a Second Language school, or online education marketplace as
18 defined in article one hundred one of the education law, or a for-profit
19 degree-granting institution approved pursuant to the department of
20 education, including any such institution with a physical presence in
21 the state or enrolling New York state students in an online distance
22 education program.
23 2. In addition to the protections afforded to consumers in this arti-
24 cle for students that are attending or at one time attended a proprie-
25 tary institution in this state, the attorney general whenever he or she
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00170-01-3
A. 493 2
1 believes from evidence satisfactory to him or her that any proprietary
2 institution, an agent or employee thereof, or a private third party
3 operating in concert with or at the direction of the proprietary insti-
4 tution, has engaged in any of the acts or practices deemed to be unfair
5 under this section, the attorney general may bring an action in the name
6 and on behalf of the people of the state of New York to enjoin such
7 unfair acts or practices, obtain restitution of any moneys or property
8 obtained directly or indirectly by any such unfair acts or practices,
9 and/or obtain civil penalties for violations of this section. In such
10 action preliminary relief may be granted under article sixty-three of
11 the civil practice law and rules.
12 3. An act or practice shall be deemed unfair under this section if:
13 (a) it causes or is likely to cause substantial injury to students
14 that are attending or at one time attended a proprietary institution
15 that cannot be reasonably avoided by students that are attending or at
16 one time attended a proprietary institution; or
17 (b) it is not outweighed by countervailing benefits to students that
18 are attending or at one time attended a proprietary institution, or to
19 competition.
20 4. Nothing in this section shall supersede, amend or repeal any other
21 law of this state under which the attorney general is authorized to take
22 any action or conduct any inquiry.
23 5. In addition to the right of action granted to the attorney general
24 pursuant to this section, any person or class or persons who have been
25 injured by reason of any violation of this section may bring an action
26 to enjoin such unlawful act or practice, an action to recover actual
27 damages, or both such actions. The court may, in its discretion,
28 increase the award damages to an amount not to exceed three times the
29 actual damages. The court may award reasonable attorney's fees to a
30 prevailing plaintiff.
31 § 3. This act shall take effect immediately.
