The New York State Department of Financial Services (DFS) outlined a package of consumer protection measures enacted in New York’s FY 2026 State budget following Governor Kathy Hochul’s signing of legislation, spanning online subscriptions, e-commerce returns, Buy Now, Pay Later (BNPL) lending, algorithm-driven “surveillance pricing,” and overdraft fees. The legislation requires businesses to notify consumers of upcoming subscription renewals and price changes and to provide clear cancellation instructions, with cancellation designed to be as simple as sign-up. Online retail sellers must post return and refund policies in an easily accessible way. For BNPL, the budget establishes a licensing and supervision framework for providers, including safeguards such as disclosure requirements, dispute resolution standards, limits on charges and fees, and data privacy protections. On “surveillance pricing,” businesses must clearly disclose when an algorithm used a consumer’s personal data to set a price, subject to certain exceptions. DFS also pointed to overdraft and non-sufficient funds fee reforms, referencing regulations proposed in January 2025 to eliminate the most exploitative and deceptive banking fees, cap overdraft fees, strengthen customer communications, and impose stricter transaction processing requirements. DFS indicated it will implement the initiatives, including the new BNPL oversight framework.
New York State Department of Financial Services 2025-05-09
New York State Department of Financial Services to implement FY 2026 budget consumer protection laws including BNPL licensing and surveillance pricing disclosure
The New York State Department of Financial Services announced FY 2026 consumer protection measures covering online subscriptions, e-commerce returns, BNPL lending, and algorithm-driven pricing. Key provisions include subscription renewal notifications, clear online return policies, a BNPL licensing framework, and algorithmic pricing disclosures. The measures also target overdraft fee reforms to eliminate exploitative banking fees and improve customer communications.