Consumer Fraud under GBL § 349(h) as a Claim in New York
Consumer fraud claims in New York are often brought under General Business Law § 349(h), which protects individuals from deceptive practices in the marketplace. This law allows private individuals to sue businesses or others who engage in misleading conduct that affects consumers broadly. It is one of the most widely used consumer protection statutes in the state because it focuses not just on fraud but on any act that is misleading to a reasonable consumer. To succeed on a claim under this law, the plaintiff must prove three key elements.
The Deceptive Act Must Be Consumer Oriented
The first requirement is that the deceptive conduct must be directed at consumers at large, not just at a single person in a private dispute. This means that the behavior must have the potential to affect the public, not just the specific individual who is suing. For example, if a company falsely advertises a product’s benefits on its website or in a store flyer, that advertising reaches a wide audience and qualifies as consumer-oriented conduct. However, a one-time private contract with false terms might not meet this standard unless the deception is part of a broader business practice.
The Act Must Be Misleading to a Reasonable Consumer
Next, the plaintiff must show that the act was actually misleading, and that it would have misled a reasonable person. This is not about what the most cautious or suspicious consumer might think, but what the average, reasonable consumer would believe. The standard here is objective. If a business says a product is “100 percent organic” when it contains synthetic ingredients, that may be considered deceptive, as a typical consumer would rely on the label and expect it to be truthful.
The Deception Must Cause Actual Harm
Finally, the plaintiff must show that the misleading act caused them some form of harm. This could be financial loss, such as paying for a defective product, or other damages that directly resulted from relying on the deceptive act. If the consumer didn’t suffer any actual harm, even if the act was misleading, a claim under GBL § 349(h) is unlikely to succeed.
Conclusion
New York’s General Business Law § 349(h) provides an important way for consumers to fight deceptive practices in the marketplace. To bring a successful claim, the plaintiff must show that the conduct was aimed at the public, was likely to mislead an average consumer, and caused actual harm. This law helps ensure fairness in advertising, marketing, and sales, and gives individuals the power to hold companies accountable for false or misleading behavior. It is especially useful in a wide range of industries, from insurance and healthcare to retail and technology.
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“To establish a consumer fraud claim under GBL § 349(h), plaintiff must show a deceptive act (1) that is consumer oriented, (2) that defendants engaged in to mislead a reasonable consumer, and (3) that caused plaintiff’s injury.” Hunt v. Metro. Life Ins. Co., 2020 N.Y. Slip Op. 31952, 6 (N.Y. Sup. Ct. 2020)