Edition 3 • April 12, 2026

The Week in Consumer Protection

New York strengthens consumer protection law, AG targets surveillance pricing, federal enforcement shifts to the states, FTC warns about mortgage relief scams, and data breach settlement deadlines approaching.

NY Attorney General FTC CFPB State AGs Federal Courts
Something important is happening in consumer protection right now, and most people have no idea. As federal enforcement pulls back, New York is stepping into the gap with some of the strongest consumer protection tools in the country. This edition covers two major New York developments, a scam that is targeting homeowners right now, why the CFPB pullback matters to you personally, and a credit repair fraud you should know about before you pay anyone to "fix" your credit.
NY Attorney General • GBL 349

New York Just Became One of the Strongest Consumer Protection States in the Country

On February 17, 2026, a law called the FAIR Business Practices Act took effect in New York. It is one of the most significant expansions of consumer protection authority in the state's history, and it directly affects every New Yorker who buys products, uses services, or deals with financial institutions.

For nearly 50 years, New York's main consumer protection statute, General Business Law Section 349, only covered "deceptive" practices. That meant the Attorney General had to prove a company actively misled consumers. The new law adds two additional categories: "unfair" practices and "abusive" practices. A practice is unfair if it causes substantial harm to consumers that they cannot reasonably avoid and that is not outweighed by benefits to consumers or competition. A practice is abusive if it takes unreasonable advantage of a person's lack of understanding of the risks or costs of a product or service.

In practical terms, this means the Attorney General now has broader authority to investigate companies that may bury fees in fine print, make it unreasonably difficult to cancel subscriptions, or structure financial products in ways that could take advantage of consumers who do not fully understand the terms. The law also eliminates the old requirement that the conduct be "consumer-oriented," which means it can potentially reach purely commercial transactions as well.

General Information

If a company's practices feel unfair even though they may have been technically disclosed somewhere in the fine print, the law may now provide additional avenues for enforcement. The FAIR Act gives the New York Attorney General new tools to examine business conduct that may cause real harm, even when a company did not explicitly make a false statement. This represents a meaningful shift in how consumer protection works in New York.

NY Attorney General consumer protection resources →
NY Attorney General • Surveillance Pricing

Are You Paying More Because an Algorithm Knows Where You Live?

New York Attorney General Letitia James is pushing for passage of the One Fair Price Package, two bills that would ban a practice commonly referred to as surveillance pricing. According to the Attorney General's office, the practice involves companies using personal data, including location, browsing history, purchase patterns, and payment timing, to set individualized prices for the same product. Under this model, two people shopping on the same website at the same time could potentially see different prices for the identical item.

A study cited by the Attorney General found that 74 percent of grocery items were offered at multiple different prices online, with some items reportedly sold at up to five different prices simultaneously. The proposed legislation would ban this practice statewide. A companion bill would also prohibit electronic shelf labels in grocery stores and pharmacies, which can allow retailers to adjust in-store prices based on demand, time of day, or other factors.

As Attorney General James put it: "When New Yorkers place an order online or go to the grocery store, they should be able to trust that they are seeing the same prices as everyone else, not an individualized price set by an algorithm." The bills go further than a 2025 disclosure law signed by Governor Hochul, which required companies to tell consumers when they use algorithmic pricing but did not actually prohibit the practice.

General Information

If you have noticed that prices seem to change depending on when you shop, which device you use, or whether you are logged in, you may not be imagining it. Personalized pricing practices have drawn increasing scrutiny from regulators, and New York is actively considering legislation to address them. In the meantime, some consumer advocates suggest shopping in private browsing mode and comparing prices across devices before making significant purchases.

AG James on surveillance pricing →
CFPB • State AGs

The CFPB Is Pulling Back. Here Is What That Means for You.

The Consumer Financial Protection Bureau, the federal agency created after the 2008 financial crisis to oversee consumer financial markets, is reportedly operating at significantly reduced capacity in 2026. According to multiple reports, the agency has issued stop-work orders, closed supervisory exams, terminated certain enforcement cases, and pursued workforce reductions. In practical terms, this may mean fewer federal investigations into credit bureaus, debt collectors, mortgage servicers, and other financial companies in the near term.

This does not mean consumers are without protection. State attorneys general across the country are stepping up to fill the enforcement gap. Former CFPB Director Rohit Chopra has taken an advisory role with a coalition of state attorneys general focused on coordinated consumer protection initiatives. New York's FAIR Business Practices Act, discussed above, is one example of states strengthening their own tools. Pennsylvania has launched a new consumer protection hotline specifically to address what it called "the void left by weakened federal consumer protections."

For consumers, the shift may mean that the agency you might have filed a federal complaint with is less likely to act on it in the near term. However, your individual legal rights under the FCRA, FDCPA, TCPA, and other federal statutes remain fully intact. Private lawsuits by consumers and their attorneys are entirely unaffected by changes at the CFPB. If a debt collector engages in conduct that may violate the FDCPA, a credit bureau fails to properly investigate a dispute, or a robocaller contacts you without proper consent, the right to pursue a private legal claim remains available. Class action filings in consumer protection, by some accounts, have actually been increasing.

General Information

Your consumer rights under federal law have not changed, regardless of developments at any single agency. If you believe a financial company has violated your rights, private legal remedies remain available under the FCRA, FDCPA, TCPA, EFTA, and other statutes. The fee-shifting provisions in many of these laws mean that, in qualifying cases, consumers may pay nothing out of pocket. The enforcement landscape is shifting, but the underlying rights have not.

CFPB consumer tools →
FTC • Mortgage Fraud

Mortgage Relief Scams Are Targeting Homeowners Right Now

The FTC issued a consumer alert on April 2, 2026 warning about what it describes as a surge in mortgage relief scams. According to the FTC, the pattern typically involves unsolicited calls to homeowners who have experienced hardships such as natural disasters, job loss, or medical bills, offering to modify their mortgage or help them avoid foreclosure in exchange for upfront payment.

Under the Mortgage Assistance Relief Services (MARS) Rule, it is illegal for any company to charge a fee before providing the consumer with a written offer from their lender that the consumer has accepted. According to the FTC, consumers should be cautious of any entity that requests payment before delivering results, particularly via cashier's check, wire transfer, or mobile payment apps, as those methods can be difficult to reverse.

The FTC has also warned about arrangements that involve transferring the deed to a home, noting that consumers who do so may risk losing ownership of their property. HUD-approved housing counselors, by contrast, provide mortgage assistance at no cost to the homeowner.

General Information

If someone calls you unsolicited and offers to help with your mortgage for a fee, hang up. Legitimate help is available for free through HUD-approved housing counselors at 800-569-4287. Never pay upfront for mortgage modification services, and never sign over your deed. Report suspicious offers to the FTC at ReportFraud.ftc.gov and to the New York Attorney General.

FTC mortgage relief scam alert →
Data Breaches • Consumer Settlements

Several Major Data Breach Settlements Have Upcoming Deadlines You Should Know About

If your personal information was compromised in a data breach over the past few years, there may be money waiting for you. Several high-profile data breach settlements are currently open for claims, and some have deadlines approaching in the coming months. These settlements typically arise from class action lawsuits filed on behalf of consumers whose data was exposed due to alleged security failures.

Among the settlements currently accepting claims: the Comcast data breach settlement has a claim deadline of August 14, 2026, with a final approval hearing scheduled for July 7. The LastPass data breach settlement requires claims by July 2, 2026, with a hearing on July 14. And the Lakeview Loan Servicing settlement, involving a mortgage servicer, has a claim deadline of June 22, 2026. Each of these settlements offers compensation to affected individuals, often without requiring proof that your data was actually misused.

Most data breach settlements include a base compensation tier, typically ranging from $25 to $150, that requires only confirmation that you were affected and submission of a claim form. Higher-tier payouts may be available if you can document out-of-pocket losses such as credit monitoring costs, time spent dealing with identity theft, or unauthorized charges that resulted from the breach. The key point is that you generally need to file a claim to receive anything. Settlements do not automatically send checks to affected consumers.

General Information

If you received a notice about a data breach from a company you do business with, do not ignore it. Check whether a settlement has been reached and whether you are eligible to file a claim. Legitimate settlement websites typically end in "settlement.com" and are referenced in court documents. You should never have to pay to file a claim. If a data breach led to identity theft or fraudulent accounts on your credit report, you may also have individual claims under the FCRA that go beyond the class settlement.

FTC refunds and settlements →

Have questions about anything you read here? Wondering if something that happened to you is a violation of federal law? We offer free consultations and there is no cost to you for most consumer protection cases.

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