New York Announces 2024 Consumer Protection and Affordability Agenda | Practical Law

New York Announces 2024 Consumer Protection and Affordability Agenda | Practical Law

New York announced its 2024 State of the State which includes a sweeping Consumer Protection and Affordability agenda that will establish regulations for the Buy Now Pay Later loan industry and amend existing consumer laws to strengthen consumer protections against unfair business practices.

New York Announces 2024 Consumer Protection and Affordability Agenda

Practical Law Legal Update w-041-8888 (Approx. 3 pages)

New York Announces 2024 Consumer Protection and Affordability Agenda

by Practical Law Finance
Published on 09 Jan 2024USA (National/Federal)
New York announced its 2024 State of the State which includes a sweeping Consumer Protection and Affordability agenda that will establish regulations for the Buy Now Pay Later loan industry and amend existing consumer laws to strengthen consumer protections against unfair business practices.
On January 2, 2024, New York Governor Kathy Hochul announced a sweeping Consumer Protection and Affordability agenda as the First Proposal of the 2024 State of the State. The agenda previews plans to:
  • Establish regulations for the Buy Now Pay Later loan industry.
  • Amend consumer laws to strengthen consumer protections against unfair business practices.
The announcement notes that New Yorkers are increasingly turning to Buy Now Pay Later loans as a low-cost alternative to traditional credit products to pay for everyday and big-ticket purchases. The proposed legislation and regulations will require Buy Now Pay Later providers to get a license to operate in the state. The New York State Department of Financial Services (NYDFS) will propose and issue regulations that will establish strong industry protections around:
  • Disclosure requirements.
  • Dispute resolution and credit reporting standards.
  • Late fee limits.
  • Consumer data privacy.
  • Dark patterns and debt accumulation and overextension.
The announcement also notes that while current consumer law protects New Yorkers against deceptive business practices, New York is one of only eight states in the nation whose law fails to protect against unfair and abusive business practices. The proposed amendments will expand consumer protection laws to:
  • Transform how New York protects consumers.
  • Enhance the Attorney General’s ability to enforce consumer protections.
  • Give New York additional tools to pursue bad actors.