Deceptive Business Practices

New York has a statute barring deceptive business practices that is very favorable to an injured consumer.  The statute permits recovery of as much as three times a plaintiff's actual damages.  Thus a claim for a deceptive business practice can significantly increase a defendant's exposure and is worth bringing in conjunction with other claims.

And under the statute, the court may award attorneys fees to persons injured by deceptive trade practices.  It can't be over emphasized that the economics of the litigation often determines the outcome.  So if the plaintiff knows that he has a chance of being reimbursed for his attorneys fees, he can litigate longer and harder.  By the same token, the defendant will know that he may have to pay for the plaintiff's attorneys fees.  That significantly increases the defendant's exposure, and may tip the scales in favor of the creditor.

But plaintiff has to be a consumer-- that is, someone who purchased goods or services for personal or residential use.  That means that most disputes between businessmen won't qualify.  For example, a dispute over most industrial equipment isn't a consumer transaction, because the equipment wasn't for personal or residential use.   Also, the statute has a safe harbor for prospective defendants: if the defendant's conduct complies with a regulation of the Federal Trade Commission, he has a complete defense.