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Governor Kathy Hochul has signed new consumer protection measures into law as part of New York's Fiscal Year 2026 budget. These measures aim to enhance consumer rights and ensure transparency in business practices across the state. The legislation simplifies the cancellation process for online subscriptions, requiring businesses to notify consumers of renewals and price changes and to provide easy cancellation methods. This change ensures that canceling a subscription is as straightforward as signing up for one.
Additionally, the budget mandates that online retailers clearly display return and refund policies, helping consumers navigate varying return windows and fees. The legislation introduces oversight for Buy Now, Pay Later (BNPL) loans, establishing a licensing framework and imposing safeguards like disclosure requirements and data privacy protections. This move aims to protect consumers from potential risks associated with BNPL services, such as overextension and excessive fees.
A significant aspect of the new measures is the introduction of transparency rules for surveillance pricing. Businesses must now disclose when personal data affects pricing, ensuring consumers are aware of how their data is used to determine costs. The legislation also limits certain overdraft fees, protecting low- and moderate-income New Yorkers from exploitative banking practices.
Governor Hochul emphasized that these changes are about fairness and helping New Yorkers save money. The measures reflect a broader push for consumer protection and may influence similar legislative actions in other states. As businesses adapt to these new regulations, they must ensure compliance with the state's detailed transparency and consumer protection standards.
