October 2025 Regulatory Updates: Key Developments You Need to Know

In October 2025, significant regulatory updates have emerged from various sectors, impacting consumer protection laws, arbitration agreements, and financial regulations. This article covers the highlights and implications of recent decisions and legislative changes that you should be aware of.

Focus Keyword: October 2025 Regulatory Updates

H2: CFPB Hires New Legal Talent Amid Controversies

Bite 13: CFPB Hires Attorney-Advisors
On October 10, 2025, reports surfaced that the Consumer Financial Protection Bureau (CFPB) is actively recruiting attorneys to bolster its legal division and defend the agency in ongoing appellate litigation. An internal memo dated October 1 reveals the agency’s need for two attorney-advisors to provide legal counsel across various matters. This comes in the wake of significant staffing reductions, with approximately 90 attorneys having departed from the enforcement division, representing a staggering 35% decline among its 160 staff members.

H2: California Leads with New Arbitration Law

Bite 12: California Limits Scope of Consumer Arbitration Agreements
California has taken a bold step toward consumer rights with the signing of Senate Bill 82 by Governor Gavin Newsom on October 6, 2025. This new law restricts “infinite arbitration clauses,” ensuring that dispute resolution terms in consumer agreements are only applicable to the goods or services directly provided. Starting January 1, 2026, any agreement that waives the protections outlined will be deemed void and contrary to public policy, marking a significant shift in consumer rights.

H2: Kansas Streamlines Loan License Regulations

Bite 11: Kansas Finalizes Supervised Loan License Regulation
As of October 2, 2025, the Kansas Office of the State Bank Commissioner amended regulations related to supervised loans. The new rule mandates that all supervised loan license applicants maintain a “positive net worth” without the previous stipulation of a minimum of $250,000. This regulation becomes effective on October 17, 2025, simplifying the loan licensing process for entities offering secured loans.

H2: State Attorneys General Push Back Against CFPB Proposals

Bite 10: 19 State AGs Issue Letters Opposing CFPB’s Proposals
On September 22, 2025, a coalition of 19 state attorneys general, including California’s AG, submitted letters urging the CFPB to reconsider proposed regulatory changes that would redefine the “larger participant” thresholds in various markets. The letters argue that these changes would dangerously limit the CFPB’s oversight, potentially leaving many consumers vulnerable.

H2: CFPB Terminates Several Consent Orders

Bite 9: CFPB Drops Four Consent Orders
As reported on September 22, 2025, the CFPB discontinued consent orders against several companies, including a tech firm and two banks, previously imposed under the prior administration. These companies had faced allegations related to mishandling consumer transactions and failing to provide adequate access to benefits during the pandemic, among other charges.

H2: Democratic Lawmakers Support CFPB

Bite 8: Democrats Urge Full D.C. Circuit to Hear CFPB Case
An amicus brief filed by 36 Democratic lawmakers on October 6, 2025, emphasizes the unconstitutionality of efforts to dismantle the CFPB. The brief argues that changes proposed by the Trump administration threaten the agency’s foundation and independence, underscoring the role the CFPB plays in consumer financial protection.

H2: California Enacts the CARS Act to Combat Auto Scams

Bite 7: California Governor Signs CARS Act
On October 6, 2025, the CARS Act was signed into law, imposing new requirements in the auto sales sector. This legislation closely mirrors the previously vacated FTC CARS Rule, enforcing transparency and consumer protection in vehicle sales. The act will take effect on October 1, 2026.

H2: CFPB Extends Compliance Deadlines for 1071 Rule

Bite 6: CFPB Finalizes Deadline Extensions for 1071 Rule
On October 2, 2025, the CFPB announced new deadlines for compliance with its 1071 Rule, which requires the collection of demographic information to combat discrimination in small business lending. Compliance dates have been set for July 1, 2026, for Tier 1 lenders, with subsequent deadlines for other tiers extending into 2027.

H2: Recovery of Supervisory Designation Procedures

Bite 5: CFPB Rescinds Procedures for Supervisory Designation Proceedings
The CFPB has rescinded previous amendments concerning its supervisory designation processes, reverting back to protocols set in 2013. This decision reflects a desire to keep certain proceedings confidential, aiming to protect the integrity of its supervisory processes.

H2: Supreme Court Addresses FTC Commissioner’s Notable Case

Bite 4: SCOTUS Allows Trump to Fire FTC Commissioner (For Now)
On September 22, 2025, the Supreme Court considered whether President Trump has the authority to fire an FTC commissioner. The case highlights constitutional questions surrounding agency independence and presidential powers, with significant implications for governance and oversight.

H2: Appeals Court Upholds Major Judgment Against Bail Bond Companies

Bite 3: Appeals Court Upheld Default Judgment in CFPB Action
A federal appeals court upheld a $366 million judgment against two bail bond companies for exploiting immigrants. The decision supports the CFPB’s stance against fraudulent practices and emphasizes strong legal repercussions in consumer protection.

H2: FTC Takes Action Against Misleading Credit Report Services

Bite 2: FTC Takes Action Against Business Credit Report Service Provider
On September 29, 2025, the FTC finalized a settlement with a business credit reporting service over violations of a prior order. The company will pay a total of $5.7 million due to its deceptive practices and must adopt enhanced compliance measures moving forward.

H2: Landmark Action Against Large Online Retailer

Bite 1: Takes Action Against Large Online Retailer
In a significant enforcement action on September 25, 2025, the FTC penalized an online retailer with a $1 billion civil penalty and mandated $1.5 billion in consumer restitution for deceptive subscription practices. This case sets a precedent for enforcing accountability in online retail and consumer protection.

In summary, October 2025 has seen transformative changes across various sectors, particularly in consumer protection and financial regulation. Stakeholders should remain vigilant about these developments to ensure compliance and continued protection for consumers.