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To: New York State Attorney General Letitia James
Protect Small Businesses from the Illegal Onslaught of Capital One Cafes
Banks are supposed to be banks, not cafes.
Capital One Bank is engaging in nonbanking business in violation of federal law while claiming that it is merely "sharing space" with another business that is called "Capital One Cafe" -- a claim that is nothing short of preposterous.
Federal regulations require that if a bank shares space with another business, the ”other business” must be clearly and separately identified and its operations may not be subsidized by the bank. Neither is happening. Capital One Cafés use the same logo and branding as Capital One Bank, and it’s hard to believe the bank isn’t subsidizing their cafes—especially since they occupy enormous spaces in some of the world’s most expensive real estate.
The result is customer confusion and unfair competition with small businesses that requires strong legal action by the NYS Attorney General’s Office under the FAIR Business Practices Act and General Business Law Section 349
Why is this important?
If action isn't taken soon, there is no end to the types of businesses that banks can open as a guise for selling their lucrative financial products. They can open pizza places or bookstores or barber shops to lure customers in and make their sales pitches. This hurts the small businesses that don't have the same privileges in our economy as banks do, and it hurts the character of the neighborhoods that are built on the backs of those small businesses.