Lance's Corner

DFS Highlights State Budget Consumer Protection Changes

May 12, 2025

Per the notice below, the New York State Department of Financial Services (DFS) is highlighting consumer protection changes in the State Budget.

Governor Hochul Signs New Legislation to Protect Consumers and Keep Money in New Yorkers’ Pockets as Part of the FY 2026 Budget

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

Require Online Retailers To Post Return and Refund Policies, Giving Consumers a Uniform Standard

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

Shed Light on ‘Surveillance Pricing,’ When Retailers Use Customers’ Personal Data To Set Prices

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

Governor Kathy Hochul today signed new legislation as part of the FY26 Enacted Budget that will protect consumers across New York and fight back against scams or exploitative practices.  From simplifying the process of canceling recurring online subscriptions to cracking down on overdraft fees that target low-income consumers, these new laws will help New Yorkers fight back against unfair corporate practices.

“This budget is all about affordability – lowering costs and helping New Yorkers with the rising cost of living,” Governor Hochul said.  “But our tax cuts, credits and rebates won’t be much help if bad actors are able to scam or mislead New Yorkers.  These new laws are about fairness, transparency, and accountability and will help consumers save money and spend it wisely.”

New York State Department of Financial Services Superintendent Adrienne Harris said, “This budget reflects Governor Hochul’s steadfast commitment to protecting New Yorkers and creating a fairer financial system.  From establishing oversight of ‘Buy Now, Pay Later’ products to shining a light on the hidden middlemen who drive up medical costs, these reforms will make a real difference in the lives of New Yorkers.  We are also proud to support efforts to bring much-needed stability to the livery insurance market so that drivers have more choices for quality, dependable coverage.  DFS looks forward to implementing these important initiatives and continuing to deliver on our mission to build a more equitable, resilient, and inclusive financial system for all New Yorkers.”

Easier Cancellation For Online Subscriptions

Subscription services are a part of daily life but canceling them is often needlessly complicated.  The FY26 budget includes legislation requiring businesses to notify consumers of upcoming renewals and price changes as well as provide clear instructions on how to cancel subscriptions.  Under this legislation, cancellation processes must be simple, transparent, and fair – ensuring that it is just as easy to cancel a subscription as it was to sign up.

Standardized Online Retail Returns and Refunds

Consumers are increasingly shopping online and 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.  The FY26 Budget includes legislation to require online retail sellers to post return and refund policies in a way that is easily accessible for consumers.

Oversight Over “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.  The FY26 Budget includes legislation to establish a licensing and supervision framework for Buy Now Pay Later providers.  This legislation will introduce safeguards, such as disclosure requirements, dispute resolution standards, limits on all charges and fees, and data privacy protections to ensure consumers are better protected when using these financial products.

Shed Light on “Surveillance Pricing”

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.  Today's technology means corporations are able to collect mountains of personal data, feed it into algorithms, and generate a price that's individual to a consumer.  This practice, which the FTC has dubbed surveillance pricing, means a company could be charging you and your neighbor different prices for the same product, based on your individual willingness to pay.  This practice is opaque and strips consumers of their ability to comparison shop and plan for the price of goods and services.  The FY26 Budget includes first-in-the-nation legislation that requires businesses to disclose clearly to consumers when a price was set by an algorithm using their personal data, subject to certain exceptions.

Stronger Protections Against Unfair Overdraft Fees

Overdraft and non-sufficient funds fees disproportionately harm low- and moderate-income New Yorkers.  In January 2025, Governor Hochul announced the Department of Financial Services proposed regulations to eliminate the most exploitative and deceptive banking fees, cap overdraft fees, strengthen customer communications, and establish stricter transaction processing requirements.  These regulations will protect consumers and foster accessible and affordable banking services for all New Yorkers.

USDOL Issues Comprehensive Employer Guidance on Long COVID

The United States Department of Labor (USDOL) has issued a comprehensive set of resources that can be accessed below for employers on dealing with Long COVID.

Supporting Employees with Long COVID: A Guide for Employers

The “Supporting Employees with Long COVID” guide from the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) and Job Accommodation Network (JAN) addresses the basics of Long COVID, including its intersection with mental health, and common workplace supports for different symptoms.  It also explores employers’ responsibilities to provide reasonable accommodations and answers frequently asked questions about Long COVID and employment, including inquiries related to telework and leave.

Download the guide

Accommodation and Compliance: Long COVID

The Long COVID Accommodation and Compliance webpage from the USDOL-funded Job Accommodation Network (JAN) helps employers and employees understand strategies for supporting workers with Long COVID.  Topics include Long COVID in the context of disability under the Americans with Disabilities Act (ADA), specific accommodation ideas based on limitations or work-related functions, common situations and solutions, and questions to consider when identifying effective accommodations for employees with Long COVID.  Find this and other Long COVID resources from JAN, below:

Long COVID, Disability and Underserved Communities: Recommendations for Employers

The research-to-practice brief “Long COVID, Disability and Underserved Communities” synthesizes an extensive review of documents, literature and data sources, conducted by the USDOL-funded Employer Assistance and Resource Network on Disability Inclusion (EARN) on the impact of Long COVID on employment, with a focus on demographic differences.  It also outlines recommended actions organizations can take to create a supportive and inclusive workplace culture for people with Long COVID, especially those with disabilities who belong to other historically underserved groups.

Read the brief

Long COVID and Disability Accommodations in the Workplace

The policy brief “Long COVID and Disability Accommodations in the Workplace” explores Long COVID’s impact on the workforce and provides examples of policy actions different states are taking to help affected people remain at work or return when ready.  It was developed by the National Conference of State Legislatures (NCSL) as part of its involvement in USDOL’s State Exchange on Employment and Disability (SEED) initiative.

Download the policy brief

Understanding and Addressing the Workplace Challenges Related to Long COVID

The report “Understanding and Addressing the Workplace Challenges Related to Long COVID” summarizes key themes and takeaways from an ePolicyWorks national online dialogue through which members of the public were invited to share their experiences and insights regarding workplace challenges posed by Long COVID.  The dialogue took place during summer 2022 and was hosted by USDOL and its agencies in collaboration with the Centers for Disease Control and Prevention and the U.S. Surgeon General.

Download the report

Working with Long COVID

The USDOL-published “Working with Long COVID” fact sheet shares strategies for supporting workers with Long COVID, including accommodations for common symptoms and resources for further guidance and assistance with specific situations.

Download the fact sheet

COVID-19: Long-Term Symptoms

This USDOL motion graphic informs workers with Long COVID that they may be entitled to temporary or long-term supports to help them stay on the job or return to work when ready, and shares where they can find related assistance.

Watch the motion graphic

A Personal Story of Long COVID and Disability Disclosure

In the podcast “A Personal Story of Long COVID and Disability Disclosure,” Pam Bingham, senior program manager for Intuit’s Diversity, Equity and Inclusion in Tech team, shares her personal experience of navigating Long COVID symptoms at work.  The segment was produced by the USDOL-funded Partnership on Employment and Accessible Technology (PEAT) as part of its ongoing “Future of Work” podcast series.

Listen to the podcast

HHS OIG Issues Annual Report on State MFCUs

Per the notice below, the Office of the Inspector General (OIG) of the United States Department of Health and Human Services (HHS) has issued its annual report on the performance of state Medicaid Fraud Control Units (MFCUs).

Medicaid Fraud Control Units Fiscal Year 2023 Annual Report (OEI-09-24-00200) 

Medicaid Fraud Control Units (MFCUs) investigate and prosecute Medicaid provider fraud and patient abuse or neglect. OIG is the Federal agency that oversees and annually approves federal funding for MFCUs through a recertification process. This new report analyzed the statistical data on annual case outcomes—such as convictions, civil settlements and judgments, and recoveries—that the 53 MFCUs submitted for Fiscal Year 2023.  New York data is as follows:

Outcomes

  • Investigations1 - 556
  • Indicted/Charged - 9
  • Convictions - 8
  • Civil Settlements/Judgments - 28
  • Recoveries2 - $73,204,518

Resources

  • MFCU Expenditures3 - $55,964,293
  • Staff on Board4 - 257

1Investigations are defined as the total number of open investigations at the end of the fiscal year.

2Recoveries are defined as the amount of money that defendants are required to pay as a result of a settlement, judgment, or prefiling settlement in criminal and civil cases and may not reflect actual collections.  Recoveries may involve cases that include participation by other Federal and State agencies.

3MFCU and Medicaid Expenditures include both State and Federal expenditures.

4Staff on Board is defined as the total number of staff employed by the Unit at the end of the fiscal year.

Read the Full Report

View the Statistical Chart

Engage with the Interactive Map

GAO Issues Report on Medicaid Managed Care Service Denials and Appeal Outcomes

The United States Government Accountability Office (GAO) has issued a report on federal use of state data on Medicaid managed care service denials and appeal outcomes.  GAO found that federal oversight is limited because it doesn't require states to report on Medicaid managed care service denials or appeal outcomes and there has not been much progress on plans to analyze and make the data publicly available.  To read the GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the first link below.  To read GAO highlights of the report on federal use of state data on Medicaid managed care service denials and appeal outcomes, use the second link below.
https://www.gao.gov/assets/d24106627.pdf  (GAO report on federal use of state data on Medicaid managed care service denials and appeal outcomes)
https://www.gao.gov/assets/d24106627_high.pdf  (GAO highlights on federal use of state data on Medicaid managed care service denials and appeal outcomes)

CMS Issues Latest Medicare Regulatory Activities Update

The Centers for Medicare and Medicaid Services (CMS) has issued its latest update on its regulatory activities in the Medicare program.  While dentistry is only minimally connected to the Medicare program, Medicare drives the majority of health care policies and insurance reimbursement policies throughout the country.  Therefore, it always pays to keep a close eye on what CMS is doing in Medicare.  To read the latest CMS update on its regulatory activities in Medicare, use the link below.
https://www.cms.gov/training-education/medicare-learning-network/newsletter/2024-03-14-mlnc