US-New YorkDoes GBL § 349 apply to transactions between businesses or only consumers?
GBL § 349 applies only to consumer-oriented conduct—not purely business-to-business transactions—unless the transaction impacts consumers or has a broader public impact.
What the Law Says
New York General Business Law § 349 prohibits 'deceptive acts or practices in the conduct of any business, trade or commerce or in the furnishing of any service.' Its application hinges on whether the conduct is 'consumer-oriented.'
GBL § 349 is a powerful consumer protection statute that allows individuals and the Attorney General to sue for deceptive business practices. However, it does not cover all commercial disputes — only those that are 'consumer-oriented,' meaning they have a broad impact on consumers at large or affect the public interest.
Courts consistently hold that purely private, internal, or business-to-business disputes—without connection to consumer welfare—fall outside the statute’s reach. The key question is whether the challenged act or practice 'potentially affects similarly situated consumers.'
Statutory TextDeceptive acts or practices in the conduct of any business, trade or commerce or in the furnishing of any service.
— General Business Law § 349(a) — Deceptive acts or practices
What Courts Have Said
New York courts have repeatedly clarified that GBL § 349 requires consumer-oriented conduct—not just any deception between businesses.
The Court of Appeals held that § 349 applies only to conduct 'consumer-oriented'—i.e., affecting the public at large—and not to 'a private contract dispute between two sophisticated parties.'
Confirmed that § 349 is not a general fraud statute; it requires proof that the deceptive practice has a broader consumer impact, not merely injury to one business.
What to Do
Assess whether the disputed conduct affects consumers generally—not just your business.
If the transaction is strictly B2B with no public or consumer impact, § 349 likely does not apply.
Consider alternative claims (e.g., breach of contract, common-law fraud) if consumer orientation cannot be shown.
Consult an attorney to evaluate whether your facts meet the 'consumer-oriented' threshold established by Oswego and Stutman.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.