APRO’s monthly Legislative Digest breaks down the key issues we are currently tracking – what’s happening, why it matters, and how it could impact your business.
In This Issue:
State High Priority Bills:
- NY SB 1726/AB 4918: Subjects the RTO transaction to a rate cap under New York’s usury law
Other State Bills:
- NY SB 2218: Changes minimum font size and adjusts the late fee grace period
- NY A 1371: Prohibits contracts waiving consumers’ rights to make statements about goods or services
- NY A 8427: Amends the consumer protection statute to address unfair and abusive acts and practices
Federal Developments:
- Unsubscribe Act of 2025: Takes aim at negative option marketing practices and would impose several key requirements on businesses
NOTE:
Updates to the bills we’ve been tracking are highlighted in yellow for easy identification.
New bills we are tracking are highlighted in green.
State Legislation
HIGH PRIORITY
New York SB 1726. DEFERRED. The bill would extend New York’s usury law to all financing arrangements – a term defined to include rent-to-own arrangements. The bill would also require those engaging in the business of providing finance arrangements to be licensed by the Department of Financial Services. The bill continues to remain in the Senate Judiciary Committee. Note that a companion bill – AB 4918 – has been introduced in the New York State Assembly. The Assembly bill mirrors the Senate bill. The Senate bill moved out of committee to general consideration by the Senate on May 21, 2025.
OTHER BILLS WE ARE TRACKING
New York SB 2218. DEFERRED. The bill changes the minimum font-size of a rental-purchase agreement to size 12-point font and excludes Saturdays, Sundays, and certain federally-recognized holidays for the purposes of counting the late fee grace period.
New York A 1371. DEFERRED. The bill would prohibit consumer contract provisions that waive the consumer’s right to make statements regarding the goods or services or the lessor or its employees or agents.
New York A 8427. AWAITING ACTION. The New York FAIR Act would amend New York law to expand its consumer protection statute to encompass “unfair” and “abusive” conduct in addition to “deception.” The bill is a program bill from the New York Office of the Attorney General and seeks to protect New Yorkers from companies that, among other things, make it difficult for consumers to cancel subscriptions, impose “junk fees,” and take advantage of consumers with limited English proficiency. The expansion of the New York consumer protection law to include unfair and abusive practices is noteworthy in light of the potentially diminished role of the CFPB in financial services regulation. The New York legislature passed the bill on June 17, 2025. The bill awaits Governor Hochul’s signature.
Federal Developments
Unsubscribe Act of 2025. A bipartisan bill has been introduced in the U.S. Senate that takes aim at negative option marketing practices. The bill mirrors many provisions from the now-vacated FTC Negative Option Rule and would impose several key requirements on businesses, including:
- Clear and conspicuous disclosure of all material terms before any payment is collected;
- Express, informed consent to the negative option feature before charging the consumer;
- Easy-to-use cancellation methods—electronic cancellation must be available if the agreement was entered into electronically
SB 2253 goes a step further than the FTC rule by prohibiting automatic renewal or continuation of a contract beyond the initial term unless the consumer provides fresh, express consent. SB 2253 has been referred to the Committee on Commerce, Science, and Transportation.
