New Yorkers could pay even more at the grocery store if pro-lawsuit bill becomes law

New Yorkers are no strangers to the high cost of living, but skyrocketing food costs have families and small businesses feeling the pinch more than ever. Unfortunately, a piece of legislation moving in the state legislature threatens to make matters worse.

Another increase in food and beverage costs won’t just be an inconvenience. It’ll be a serious strain on household budgets, forcing families across the state to adjust their way of life. A recent poll from No Kid Hungry exposes a stark reality: 85% of families believe food costs are rising faster than their incomes, and nearly half of all New Yorkers say it’s become much harder to afford groceries in the last 12 months. The price of essentials like eggs, bread, and milk only continue to climb.

Now, the misleadingly named Consumer and Small Business Protection Act is poised to advance in Albany. Deceptively advertised, the bill will be disastrous for consumers and small businesses alike.

The bill is aimed at business practices considered unfair or abusive, but its approach is too broad and its language too vague. Instead of focusing on actual bad actors — which the business community, too, wants to root from its ranks — the measure casts a wide net that could ensnare perfectly law-abiding businesses in questionable lawsuits filed by profit-driven class action lawyers. The bill introduces subjective legal standards, creating enormous new liabilities for anyone doing business in New York. This vagueness opens the door for more lawsuits, which, in turn, will drive up costs for everyone — especially when it comes to food and beverages.

Retailers, already dealing with workforce shortages and retail theft, will be entering a treacherous new legal landscape. Minor grievances, such as pricing discrepancies or product availability issues, could be blown out of proportion, leading to costly legal battles. The full business community is sounding the alarm: these concerns are echoed by groups representing every sector of New York’s economy, from farmers to restaurant owners to grocery and convenience stores. They’re urging lawmakers to reconsider their support for this bill and to reject it outright.

The sad irony is that while the bill is championed as a way to protect consumers from dishonest vendors, it’s likely to have the opposite effect. The real winners would be class-action attorneys, who historically have benefited immensely from similar laws. Studies, including one from the Jones Day law firm, reveal that these lawyers often receive a disproportionate share of settlement amounts. The law firms are earning more than the consumers they claim to represent. While each consumer involved in the class action might receive a trivial amount, the attorneys who file these lawsuits often walk away with millions.

Why lawmakers are pushing this legislation remains murky. New York already leads the nation in class action lawsuits, with consumer class-action filings tripling between 2017 and 2020. If this bill passes, we can only expect these numbers to soar even higher, clogging our courts and encouraging more speculative claims that do little more than pad lawyers' pockets.

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The fact is, as written this legislation poses a serious threat to the state’s economic health, which is still reeling from the setbacks of the recent pandemic. Local businesses, many operating on razor-thin margins, would be forced to pass on their increased legal costs to consumers. In a state where many are already struggling to make ends meet, higher prices on essentials like food will only deepen the economic divide, hitting low-income families the hardest.

In times of economic uncertainty, the last thing New Yorkers need is for Albany to make daily life more expensive. Not only is the name of this bill misleading, so is its supposed outcome. It will serve powerful political interests in the legal community more than it will the public. As more voices raise their concerns, lawmakers need to take note and reject a bill that will hinder, not help, the state’s economic recovery and growth.

Any amendment to the law should truly target deceptive practices without compromising the stability of our economy or the ability of our most vulnerable to afford food. New York residents have enough to worry about without fearing yet another increase in the cost of living. To our elected officials: it’s time to step back and reassess — New York’s families are counting on you to make the right decision.

Mike Durant is president and CEO of the Food Industry Alliance of New York State, the only statewide trade association representing the interests of New York State’s food retailers and wholesalers.

Tom Stebbins is executive director of the Lawsuit Reform Alliance of New York, a broad-based coalition of New York business leaders, professionals, and consumers committed to fixing the Empire State’s notoriously litigious climate to create jobs and energize the state’s economy.