Enacted SFY 2025-26 Budget Includes Major Consumer Protections for New Yorkers

Enacted SFY 2025-26 Budget Includes Major Consumer Protections for New Yorkers

Assembly Wins New Safeguards on AI, Refunds, Subscription Cancellations and Algorithmic Pricing

Speaker Carl Heastie and Consumer Protection Committee Chair Nily Rozic today announced that the Enacted State Fiscal Year (SFY) 2025-26 Budget delivers a major victory for consumers with the inclusion of several key protections. These new measures, spearheaded by members of the Assembly, will provide greater transparency, security and fairness for New Yorkers navigating modern digital and retail markets.

"This budget delivers meaningful protections for New Yorkers in today's digital marketplace," Speaker Heastie said. "These measures reflect our commitment to fairness, accountability and putting consumers first. We will continue working to make sure our laws keep pace with technology and protect people in every corner of our state."

The Assembly fought to include many measures, including:

• Requiring artificial intelligence (AI) companions to alert users that they are not communicating with a human, and to follow a protocol if users express suicidal ideation or self-harm;
• Mandating clear return and refund policies from online retailers and retail stores;
• Requiring subscription services to provide simple, clear cancellation methods-known as the "Click to Cancel" provision;
• Demanding businesses disclose when prices are generated using personal data through algorithmic pricing models; and
• $2.5 million in funding for the Public Utility Law Project to provide representation to low-income consumers in utility related matters.

"These budget wins are a major step forward in protecting consumers in the digital age," said Assemblymember Rozic. "From preventing dark patterns in subscription traps to demanding honesty from AI tools, New Yorkers will now be better informed, empowered, and protected."

Assemblymember Bores, who championed the Click to Cancel legislation, praised the budget inclusion: "Consumers deserve a fair shot when dealing with subscriptions. If signing up is one click, canceling should be just as easy. This provision brings balance back to a marketplace that's long favored corporate trickery over transparency."

Assemblymember Emérita Torres, sponsor of the algorithmic pricing disclosure bill, said, "People have a right to know when their personal data is being used to shape what they're charged. This budget ensures transparency in pricing and helps prevent discriminatory or exploitative practices."

Assemblymember Clyde Vanel, who has sponsored legislation to regulate AI and safeguard users, celebrated the inclusion: "As AI becomes more embedded in our lives, we have a responsibility to ensure it's used ethically and responsibly. Requiring AI to identify itself and respond appropriately when someone is in crisis is about saving lives and promoting transparency. This is a meaningful step toward responsible AI deployment."

These new protections reflect New York's national leadership on consumer rights and digital accountability. The Assembly's work builds on growing bipartisan momentum to hold corporations accountable and give consumers the tools they need to make informed decisions.