Require 30-Day Window for Returns, Giving Consumers a Uniform Standard

Guard Against Websites Using Personal Data To Set Prices Without the Consumer’s Awareness

Crack Down on Exploitative Overdraft Fees That Target Low-Income Customers

Regulate ‘Buy Now, Pay Later’ Loans and Establish Licensing and Supervision Frameworks

Make It Easier for Consumers To Cancel or Renew Subscriptions Through a Simpler, More Transparent Process

Force Energy Service Companies To Return Unclaimed Funds to Customers

Combat Elder Financial Exploitation and Protect Against Fraudulent Activity

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Governor Kathy Hochul today announced new proposals to protect New York consumers as part of her 2025 State of the State. These include proposals to protect consumers shopping online, crack down on exploitative practices and regulate emerging industries.

“New Yorkers are tired of being nickel-and-dimed by hidden fees, overly burdensome policies, confusing fine print and unfair practices,” Governor Hochul said. “Online shopping is more popular than ever, and we need to update our laws to reflect the changing times. That’s why I’m proposing nation-leading consumer protections that prioritize consumer rights and keep hard-earned money in New Yorkers’ pockets.”

With New Yorkers continuing to feel the financial pinch of inflation, Governor Hochul has made it her priority to put more money back in families pockets – and make sure it stays there. From taking on predatory bank fees to signing common-sense legislation guarding against data theft, Governor Hochul has fought for consumers. Building on her work advocating for consumers, Governor Hochul proposes policies that will ensure that New York State can lead in establishing common-sense, workable consumer protections that will safeguard pocketbooks and help families get ahead.

Standardize 30-Day Returns and Refunds

Consumers are increasingly shopping online, making more returns, and increasingly navigating a sea of varying return windows, restocking fees, refund formats, shipping practices and more. New Yorkers, particularly during the holiday season, know how hard it is to juggle various return policies that affect when they can send back a gift or exchange clothing that didn’t fit.

With e-commerce sales rising and returns accounting for billions of dollars annually, New Yorkers deserve stronger consumer protections. Governor Hochul proposes legislation to require retail sellers to offer a minimum 30-day return window for various products unless otherwise specified. Governor Hochul’s proposal will be tailored towards medium and larger businesses and will include exemptions for perishable, customized, final sale, or other goods that are not eligible for return. This groundbreaking initiative will set a new standard for consumer rights and make online shopping fairer and more reliable for New Yorkers.

Fight Back Against Algorithmic Price Discrimination

As consumers spend more of their time and money online, they're also sharing more information like browsing behavior, location, and purchase history with the companies they interact with. While some companies have historically shifted prices based on external market conditions, today's technology means corporations are able to collect mountains of personal data, feed it into algorithms, and potentially utilize those systems to generate a price that's individual to a consumer. This practice, which the FTC has dubbed surveillance pricing, could strip consumers of their ability to comparison shop, plan for the price of goods and services, and may in some instances be potentially discriminatory.

Governor Hochul proposes first-in-the-nation legislation that requires businesses to notify online shoppers when prices are set based on their personal data. To ensure companies are not discriminating against individuals in how they price products, Governor Hochul will work to expressly prohibit the use of protected class data, which includes but is not limited to age and sex, in the setting of prices.

Strengthen Protections Against Overdraft and Non-Sufficient Funds Fees

Overdraft and non-sufficient funds fees disproportionately harm low- and moderate-income New Yorkers. In November 2023, Governor Hochul signed legislation empowering the Department of Financial Services to regulate abusive fee practices, including the order of payment for checks and insufficient fund charges.

Governor Hochul will direct the Department of Financial Services to issue regulations targeting exploitative banking practices while preserving access to high quality banking services. These regulations will prohibit predatory fees, cap the number of daily overdraft charges, and improve transparency through timely notifications. These measures will protect consumers and foster accessible and affordable banking services for all New Yorkers.

Strengthen Subscription Cancellation and Renewal Protections

Subscription services are a part of daily life but canceling them is often needlessly complicated. Governor Hochul signed legislation requiring businesses to notify consumers of upcoming renewals and provide clear instructions on how to cancel subscriptions. To further protect consumers, Governor Hochul will propose additional legislation to ensure cancellation processes are simple, transparent, and fair, ensuring that it is just as easy to cancel a subscription as it was to sign up. These actions will reinforce New York’s commitment to safeguarding consumer rights and preventing predatory practices.

Establish Oversight of “Buy Now, Pay Later” Loans

“Buy Now, Pay Later” loans are increasingly popular but pose risks to consumers, including overextension, inconsistent credit reporting, data exploitation, and excessive fees. These concerns highlight the need for stronger oversight in this rapidly growing financial sector.

Governor Hochul proposes legislation to establish a licensing and supervision framework for Buy Now Pay Later providers. This initiative will introduce safeguards, such as disclosure requirements, dispute resolution standards, late fee limits, and data privacy protections to ensure consumers are better protected when using these financial products.

Hold Energy Service Companies Accountable for Revenue Return

Utility companies are required to return unclaimed funds to New York residents, but Energy Service Companies (ESCOs) are not subject to the same requirement, creating a loophole that risks money that rightfully belongs to residents slipping through the cracks. To address this, the Governor will propose legislation to ensure ESCOs are subject to the same requirements as utility companies.

Combat Elder Financial Exploitation

Each year, older Americans lose billions to financial scams and exploitation. Criminals are cruelly trying to scam elderly New Yorkers, which can rob them of their savings and means of financial security.

To combat elder financial exploitation, Governor Hochul will seek legislation to help protect against fraudulent activity, by providing more authority to banks and other institutions to pause certain suspicious transactions and mandate reporting of suspected exploitation and fraud to law enforcement and Adult Protective Services. Further support will be provided to enable the state to develop training for financial institutions on how to spot financial exploitation of elderly and vulnerable adults while protecting their autonomy.

New York State Department of Financial Services Superintendent Adrienne Harris said, “New Yorkers should not be unfairly penalized for using services like overdraft protection and buy now pay later products to cover expenses. I am proud to work with Governor Hochul to prohibit deceptive overdraft fees and ensure that Buy Now Pay Later companies are no longer operating unregulated in the state.”

New York State Public Service Commission Chair Rory M. Christian said, “I applaud Governor Hochul’s continued push to assist consumers in New York State, and this new action to keep energy service companies accountable to their customers is a big step in that direction.”

New York Secretary of State Walter T. Mosley said, “At the Division of Consumer Protection, we work hard to protect consumers from being taken advantage of before, during and after a purchase in-store or online. We applaud Governor Hochul’s proposal to strengthen the laws that will hold unscrupulous actors accountable and stand up for New York’s consumers in the marketplace.”