How is it illegal to not buy something? These people have no case.
Progressive Politics
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"You can't not like us" the country
They're citing an anti discrimination law that applies to individual people as you can't refuse business to someone based on their nationality. That doesn't really apply here as they're refusing to do business with a specific country. The class of people they're not doing business with isn't specified in the boycott.
They're trying to use the legal system to stymy free speech. It falls under anti-SLAPP laws.
Looking at this, https://is-this-legal.com/is-bds-legal-in-new-york/ you seem to be on target; I suspect SCOTUS is the intended goal.
We should stop letting religious extremists write laws.
Anti-BDS laws.