Consumer Alerts

This Tax Season, Attorney General Bonta Issues Consumer Alert, Offers Californians Tips to Safely File Taxes

March 25, 2024
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert with tips on filing and preparing taxes safely. As Tax Day approaches, many Californians may seek out assistance with filing their state and federal tax returns. To avoid falling victim to a tax-related scam, Attorney General Bonta advises Californians to file early, take actions to protect themselves online, and learn about free or low-cost tax filing opportunities. Through the IRS Direct File pilot program, eligible California taxpayers can file their 2023 federal taxes directly with the IRS for free.

“For working families, tax season serves as a long-awaited opportunity to get ahead on bills, make needed home repairs, or finally start planning a vacation,” said Attorney General Bonta. “This Tax Season, we want to make sure Californians don’t fall victim to tax-related fraud or scams. I encourage Californians to review our website for tools, tips, and resources to make filing taxes easier and safer at oag.ca.gov/consumers. And if you believe you are the victim of a tax-related scam, report it at oag.ca.gov/report.”

How to Protect Yourself from Tax Scams:

  • File early — You are less vulnerable to scammers if you file early and have your refund in hand. Avoid putting yourself at risk of being the next victim and file your taxes as early as possible. 
  • Hang up the phone! — IRS and FTB will only call a person who owes taxes if they have tried to contact you by mail. Legitimate IRS and FTB agents will not threaten jail time or seek payment over the phone or through a wire transfer. Consumers should not make any payments and should contact the agency directly by looking up government contact information online. Calls impersonating the IRS should be reported to the Treasury Inspector General for Tax Administration (TIGTA). Those impersonating the FTB should be reported here.  
  • Do NOT open the email — Never open an email or text message that says it is from the IRS or the FTB. The IRS and FTB do not use email, text message, or social media to request personal or financial information or to send notice regarding audits or refunds. Replying to the email, opening attachments, or clicking on links may enable scammers to collect your personal information or infect your computer with viruses or other malware.
  • Think beyond the password  For greater security, get an Identity Protection PIN (IP PIN) for your e-filing account with the IRS. A new PIN is provided each year by the IRS. 
  • Use two-step authentication — Check on the availability of two-step authentication to protect your tax filing accounts (and other online accounts containing sensitive information, such as your email and social media accounts). Two-step authentication adds a second factor, such as a one-time use code that is sent to you by email, phone, or text. You enter that code, along with your username and password, to get access to your account.

Tax Preparation Resources:

You may qualify for free help! Many consumers turn to third-party tax preparation services for help filing their tax returns. Attorney General Bonta encourages consumers to find out if they qualify for free tax help.

  • IRS Direct File pilot program — Using the first-of-its-kind pilot program, eligible California taxpayers can file their 2023 federal taxes directly with the IRS for free. To see if you qualify for this program, check here.
  • FTB CalFile — The FTB’s CalFile program allows qualified individuals to quickly e-file their state tax return directly to the FTB, free of charge. To see if you qualify, check here.  
  • VITA/TCE — The IRS Volunteer Income Tax Assistance program provides free tax help to people who make $64,000 or less annually, persons with disabilities, and people who do not understand English well. The Tax Counseling for the Elderly program offers free tax help for all taxpayers, particularly those over 60, specializing in questions about pensions and retirement-related issues. More information on these programs is available here.

Quick Tip! You may qualify for cash back or a reduction of the tax you owe under the Earned Income Tax Credit and the California Earned Income Tax Credit programs. Check to see if you qualify for one or both!

Need more time to prepare? You can also use IRS Free File to electronically request an automatic tax-filing extension, regardless of your income. You will then have until October 15 to file a return. More information on how to request an extension can be found on the IRS website.

Find a reputable tax preparer. Make sure your tax preparer is reputable and qualified to provide tax services. In California, only an attorney, certified public accountant (CPA), IRS-enrolled agent, or registered-tax preparer can prepare tax returns for a fee. To confirm whether a tax preparer is registered with the IRS, check here. 

If you believe you have been the victim of a tax-related scam or other misconduct, you can file a complaint with our office at oag.ca.gov/report or with the IRS

To learn about how to protect yourself and your loved ones against fraud, visit our website at oag.ca.gov/consumers.

 

 

On the Fifth Annual Slam the Scam Day, Attorney General Bonta Warns Californians of Social Security-Related Scams

March 7, 2024
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

OAKLAND — California Attorney General Rob Bonta today, in observation of the Fifth Annual Slam the Scam Day, issued a consumer alert warning Californians to beware of Social Security-related scams and other government imposter scams. In a government imposter scam, someone claims to be an official government employee, and may ask for personal information, demand payment, or make threats. These scams primarily use the phone, but scammers may also use email, text messages, social media, or U.S. postal mail. According to the FTC, in 2023, consumer loss from government imposter scams increased to more than $617 million. In today’s alert, Attorney General Bonta provides Californians with tips to avoid falling victim to these types of scams.

“Today and every day, I am dedicated to using every tool at my disposal to protect California consumers,” said Attorney General Bonta. “Social Security-related scams hold the top spot as the most common type of government imposter scam; I urge everyone to take the necessary precautions to protect themselves and report any suspicious activity to your local law enforcement and to my office at oag.ca.gov/report.”

Protect Yourself from Social Security-Related Scams

Government imposter scams can take money from your bank account, steal your identity and passwords, seriously harm your credit score, and lead to other problems like a loss of security clearance for service members and others. Below are some tips to help you avoid falling victim to these scams:

  • Hang up the phone: If you suspect a scam call, immediately hang up or do not respond. The longer you stay on the line, the higher your chances of becoming a victim.
  • Protect your Social Security number (SSN): To protect your SSN, avoid carrying your Social Security card in your wallet, and instead keep it at home in a safe place. Only provide your SSN when absolutely necessary – such as on tax forms or employment records – and if a business asks you for your SSN, see if there is another number that can be used instead.
  • Protect your online information and accounts with strong passwords: Protect yourself by using different, unique passwords for each of your online accounts. Make sure that the passwords you use are at least eight characters, including a mix of letters, numbers, and symbols. Consider using a password manager to provide suggestions and store strong passwords.
  • Don’t click on suspicious links: Scammers try to steal your money, personal information, or passwords by getting you to click on links that are sent to you in texts, emails, or social media. Text messaging is particularly dangerous because you might in a hurry click on a link and begin entering a password, not realizing that the link was phony and your password is being recorded. Don’t click on suspicious links. 
  • Check your credit card bills and bank statements often: Look for unauthorized charges, withdrawals, or unexpected bills, and report irregular activity to your bank as soon as you see it. If you notice that a bill didn’t arrive on time, it may mean that someone has changed the contact information on your account in order to hide fraudulent charges. Don't share personal information: Be careful about what personal information you share, such as your address or financial information.
  • Take advantage of free annual credit reports: You are entitled to one free credit report every year from each of the three national credit bureaus: EquifaxExperian and TransUnion. Your credit history contains information from financial institutions, utilities, landlords, insurers, and others. By checking your credit reports at least once a year, you can identify signs of identity theft, as well errors in your report that could be raising the cost of your credit. Order your free annual credit reports by phone, toll-free, at 1-877-322-8228, or online at www.annualcreditreport.com.
  • Talk to friends and family: Always seek a second opinion from your friends and family if you suspect an interaction is a scam. 

As a rule of thumb, real government officials will never:

  • Threaten you with arrest or legal action in exchange for immediate payment.
  • Promise to increase your benefits or resolve an issue in exchange for a fee or transfer of funds to a protected account.
  • Ask for payment in the form of gift cards, prepaid debit cards, wire transfer, Internet currency, or by mailing cash. 

Some scammers are sophisticated. They may offer to provide “documentation,” or “evidence,” or use the name of a real government official or agency to make you think that their calls are legitimate. If you are not sure, hang up, and go to the official website of the agency (which should be a .gov website) and call them directly. 

Attorney General Bonta is committed to safeguarding the assets and finances of all California consumers. As part of National Consumer Protection Week, Attorney General Bonta highlighted ongoing efforts to protect consumers and urged reporting misconduct or violations of state consumer protection laws at oag.ca.gov/report.

For more information and resources on social-security related scams, visit our website at oag.ca.gov/consumers.

In Recognition of National Consumer Protection Week, Attorney General Bonta Highlights Recent DOJ Consumer Protection Action, Urges Consumers to Know Their Rights

March 6, 2024
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

OAKLAND – In recognition of National Consumer Protection Week, California Attorney General Rob Bonta today highlighted ongoing efforts to protect California consumers and urged Californians to report misconduct or violations of state consumer protection laws to the California Department of Justice (DOJ) at oag.ca.gov/report. Complaints submitted by the public provide DOJ with important information about potential misconduct to help determine whether to investigate a business or individual.

“In California, we have strong consumer protection laws and a tremendous team working around the clock to protect Californians online, in their financial lives, in their efforts to find and keep housing and education, and across the marketplace. And we need your help,” said Attorney General Bonta. “This National Consumer Protection week I urge Californians to stand up with me and know their rights as consumers, and to let us know if they see misconduct in the market. Whether protecting data privacy, tenant protections, or stopping egregious bank fees, as the People’s Attorney, I am committed to enforcing consumer protections in the state of California and speaking out for consumer protections nationwide.”

STANDING UP FOR CONSUMER FINANCIAL PROTECTION:

In February, Attorney General Bonta issued letters to banks and credit unions not subject to the Consumer Financial Protection Bureau’s supervision warning that overdraft and returned deposited item fees may violate California’s Unfair Competition Law (UCL) and the federal Consumer Financial Protection Act (CFPA). Some financial institutions charge up to $36 or more for each overdraft. California consumers paid an estimated $200 million in overdraft fees in 2022, with the financial burden disproportionately falling on low-income consumers and consumers of color.

In December 2023, Attorney General Bonta joined a bipartisan multistate coalition of attorneys general in submitting an amicus brief to the U.S. Supreme Court defending states’ rights to enforce state consumer financial protection in Cantero v. Bank of America.

In May 2023, Attorney General Bonta, and a coalition of 24 attorneys general, filed an amicus brief in the U.S. Supreme Court supporting the Consumer Financial Protection Bureau’s (CFPB) contention that the agency’s funding structure is constitutional and arguing that the court should not invalidate the CFPB’s past and ongoing regulatory and enforcement actions. Those regulatory and enforcement actions cover all aspects of consumer financial markets; if allowed to stand, the Fifth Circuit’s decision threatens to upend over a decade of enforcement and regulatory work by the CFPB and would be detrimental to consumers across the country.

HIGHER EDUCATION: 

There is a $1.7 trillion student loan debt crisis in the United States. DOJ is committed to supporting the efforts of the U.S. Department of Education to ease the burden of federal student loans and is committed to protecting California student loan borrowers and those seeking higher education from predatory colleges and lending.  

In February, Attorney General Bonta celebrated the decision by the California Court of Appeal affirming a lower court’s decision which found in the state’s favor in its lawsuit against Ashford University, an online, for-profit college, for violating California’s unfair competition and false advertising laws. In 2017, DOJ filed a lawsuit alleging that Ashford University and Zovio provided false and misleading information to students about career outcomes, cost and financial aid, pace of degree programs, and transfer credits, in order to persuade them to enroll to persuade them to enroll in the school and then used illegal debt collection practices when students struggled to pay their bills. As part of the decision, the court ordered Ashford University and Zovio to pay more than $21 million in penalties.

If you believe you have been the victim of a predatory loan, deceived by a for-profit college, or otherwise taken advantage of, you can file a complaint at oag.ca.gov/report

HOUSING: 

California is facing a housing shortage and affordability crisis of epic proportions. Almost 17 million Californians – 44% of all state residents – live in homes that are rented and over half of California renter households are housing cost-burdened, placing them at increased risk of housing instability and homelessness. Co-authored by Attorney General Bonta during his time as a state assemblymember, the Tenant Protection Act (TPA) limits rent increases and prohibits landlords from evicting tenants without just cause.

In February, Attorney General Bonta announced a settlement with two separate Bakersfield landlords and their property management company, Clemmer & Company, for multiple violations of the TPA and, in the case of the management company and one landlord, for violation of the Fair Employment and Housing Act.

Also in February, Attorney General Bonta issued five housing consumer alerts advising California tenants of their rights and protections under state law, and alerting property managers and landlords of their obligations to tenants. One of the alerts, a Know Your Rights alert that notifies tenants of the TPA’s statewide rent increase cap, is available in 24 languages. The remaining four consumer alerts are available in English, Spanish, Chinese (Simplified), Korean, Tagalog, and Vietnamese. All of the alerts are available here, near the bottom of the page.

In January, Attorney General Bonta announced a settlement with Invitation Homes to resolve allegations that the company violated the TPA and California’s price-gouging law by unlawfully increasing rents on approximately 1,900 households.

In June 2023, Attorney General Bonta announced a settlement against Green Valley Corporation, a San Jose-based housing developer and property manager to resolve allegations that the company violated the TPA by issuing unlawful rent increases to nearly 20 of its employee tenants and serving unlawful eviction notices to six of those employee tenants.

In addition to statewide protections, some cities and counties have additional rental protections, including stricter limits on rent increases than the TPA and additional just cause requirements. Californians should check what protections are in place where they live. For more information and resources, visit the Resources for Tenants tab here.

PROTECTING CHILDREN ONLINE:  

In January, Attorney General Bonta, Assemblymember Buffy Wicks, and Senator Nancy Skinner introduced the California Children’s Data Privacy Act (AB 1949 (Wicks)), and the Protecting Our Kids from Social Media Addiction Act (SB 976 (Skinner)), landmark legislation seeking to protect youth online. These two bills would, respectively, limit the harms associated with social media addiction and provide more robust protections for kids’ data privacy.

In October 2023, Attorney General Bonta co-led a bipartisan coalition of 33 attorneys general in filing a federal lawsuit against Meta Platforms, Inc. and affiliates (Meta), alleging that Meta designed and deployed harmful features that addict children and teens to their mental and physical detriment. Unredacted documents from this lawsuit demonstrate Meta is aware and purposefully utilizing algorithmic content delivery to target and addict children to social media — actions that they know is causing harm. 

DATA PRIVACY:

The California Consumer Privacy Act (CCPA) provides consumers with groundbreaking rights over their personal information, including:

  • Right to Know – Consumers may request that a business tell them what specific personal information they have collected, shared, or sold about them, and why it was collected, shared, or sold.
  • Right to Delete — Consumers may request that a business delete personal information that the business collected from the consumer, subject to some exceptions.
  • Right to Opt-Out — If a business sells their personal information, consumers may request that it stop doing so.
  • Rights for Minors — A business cannot sell the personal information of minors under the age of 16 without their permission and, for children under 13, without parental consent.
  • Right to Non-Discrimination — A business may not discriminate against consumers who exercise their rights under the CCPA.

Earlier this year, as part of ongoing efforts to enforce the CCPA, Attorney General Bonta announced an investigative sweep, and sent letters to businesses with popular streaming apps and devices, alleging that they fail to comply with the CCPA. The sweep focused on the compliance of streaming services with CCPA’s opt-out requirements for businesses that sell or share consumer personal information, including those that do not offer an easy mechanism for consumers who want to stop the sale of their data.  

In February Attorney General Bonta announced a settlement with DoorDash, resolving allegations that the company violated the CCPA and the California Online Privacy Protection Act (CalOPPA) by selling its California customers’ personal information without providing notice or an opportunity to opt out of that sale.

For more information about the CCPA, visit oag.ca.gov/ccpa. To report a violation of the CCPA to the Attorney General, submit a complaint at oag.ca.gov/report.

TELEMARKETING:

Telephone scams, like robocalls and robotexts, can result in people losing millions through phishing texts, imposter scams, and links containing ransomware. In 2023 alone, consumers reported losing more than $10 billion to fraud, this marks a 14% increase over reported losses in 2022. 

In February, Attorney General Bonta joined a coalition of 51 bipartisan attorneys general in issuing a warning letter to Life Corporation, a company that allegedly sent New Hampshire residents scam election robocalls during the New Hampshire primary election. The calls allegedly used artificial intelligence to impersonate the president and discourage voters from participating in the primary. 

In January, Attorney General Bonta joined a coalition of 26 attorneys general in filing a comment letter responding to the Federal Communications Commission’s (FCC) notice of inquiry related to the potential impact of emerging artificial intelligence (AI) technology on efforts to protect consumers from illegal robocalls or robotexts. 

For more tips and information on consumer protection, please visit https://oag.ca.gov/consumers.

 

Attorney General Bonta Announces Settlement with DoorDash, Investigation Finds Company Violated Multiple Consumer Privacy Laws

February 21, 2024
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

OAKLAND — California Attorney General Rob Bonta today announced a settlement with DoorDash, resolving allegations that the company violated the California Consumer Privacy Act (CCPA) and the California Online Privacy Protection Act (CalOPPA). The investigation by the California Department of Justice found that DoorDash sold its California customers’ personal information without providing notice or an opportunity to opt out of that sale in violation of both the CCPA and CalOPPA. The sale occurred in connection with DoorDash’s participation in a marketing cooperative, where businesses contribute the personal information of their customers in exchange for the opportunity to advertise their products to each other’s customers. 

“DoorDash’s participation in a marketing cooperative is a sale under the CCPA and violates its customers’ rights under our landmark state privacy law. As my office has stressed time and time again, businesses must disclose when they are selling personal information and offer Californians a way to opt out of that sale,” said Attorney General Bonta. “I hope today’s settlement serves as a wakeup call to businesses: The CCPA has been in effect for over four years now, and businesses must comply with this important privacy law. Violations cannot be cured, and my office will hold businesses accountable if they sell data without protecting consumers’ rights.”

DoorDash is a San Francisco-based company that operates a website and mobile app through which consumers may order food delivery. In order to reach new customers, DoorDash participated in marketing cooperatives and disclosed consumer personal information as part of its membership in the cooperatives. In January 2020, the first month that the CCPA was in effect, DoorDash traded personal information – including names, addresses, and transaction histories – of California consumers to a marketing cooperative in a single transfer so that it could market its services to the customers of the other participating businesses. The other businesses participating in the cooperative also gained the opportunity to market to DoorDash customers. 

Today’s enforcement action alleges that this was a sale of personal information under the CCPA, that DoorDash violated the CCPA’s requirements for businesses that sell personal data, and that it failed to cure these violations. The complaint also alleges that DoorDash violated CalOPPA by failing to state in its posted privacy policy that it disclosed personally identifiable information, like a consumer’s home address, to the marketing cooperatives. Marketing cooperatives enable businesses to trade personal information, which can lead to the widespread dissemination of private consumer data, including to data brokers and other companies that are not members of the marketing cooperative.

As part of the settlement, DoorDash will pay a $375,000 civil penalty and comply with strong injunctive terms. Specifically, DoorDash must:

•  Comply with CCPA and CalOPPA, including requirements that apply to businesses that sell personal information.

•  Review contracts with marketing and analytics vendors and use of technology to evaluate if it is selling or sharing consumer personal information.

•  Provide annual reports to the Attorney General that monitors any potential sale or sharing of consumer personal information.

Today’s settlement with DoorDash marks Attorney General Bonta’s second CCPA enforcement settlement. This enforcement action underscores that sharing of customers’ personal information with a marketing cooperative is a sale within the meaning of the CCPA and that businesses can be exposed to liability under multiple California privacy laws for the same conduct. 

As part of ongoing efforts to enforce the CCPA, Attorney General Bonta last month announced an investigative sweep, and sent letters to businesses with popular streaming apps and devices alleging that they fail to comply with the CCPA. The sweep focused on the compliance of streaming services with CCPA’s opt-out requirements for businesses that sell or share consumer personal information, including those that do not offer an easy mechanism for consumers who want to stop the sale of their data. Attorney General Bonta has previously conducted investigative sweeps related to employee information and children’s privacy. In August 2022, the Attorney General announced a settlement with Sephora resolving allegations that it failed to disclose to consumers that it was selling their personal information and failed to process opt-out requests via user-enabled global privacy controls in violation of the CCPA. 

For more information about the CCPA, visit www.oag.ca.gov/ccpa. To report a violation of the CCPA to the Attorney General, consumers can submit a complaint online at www.oag.ca.gov/report.

A copy of the complaint and proposed stipulated judgment, which details the aforementioned settlement terms and remains subject to court approval, can be found here and here.

Attorney General Bonta Submits Comment Letter to FTC on Importance of Federal-State Partnerships in Protecting Consumers from Fraud

August 15, 2023
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

OAKLAND – Attorney General Rob Bonta today announced joining a bipartisan coalition of 30 attorneys general in submitting a comment letter to the Federal Trade Commission (FTC) emphasizing the importance of federal-state partnerships in protecting consumers from fraud. On October 10, 2022, President Biden signed into law the FTC Collaboration Act of 2021, which directed the Commission to “conduct a study on facilitating and refining existing efforts with State Attorneys General to prevent, publicize, and penalize frauds and scams being perpetrated on individuals in the United States” and to provide the opportunity for public comment. On June 7, 2023, the FTC published a request for public information; the comment letter responds to that request.

“Since taking office, protecting consumers from fraud has been one of my top priorities. While the California Department of Justice has many tools at its disposal to hold unscrupulous actors accountable, we have long benefited from collaborating with the FTC and vice versa,” said Attorney General Bonta. “I join my fellow attorneys general in highlighting the importance of this federal-state partnership. Consumers and the marketplace have been better off because of it.”

In the comment letter, the attorneys general:

  • Note that the states, the FTC, and other federal partners have worked in concert for decades to benefit businesses and individual consumers.
  • Explain that the states benefit significantly from the FTC’s expertise, resources, as well as its national reach, which facilitates cross-border enforcement. For example, in United States of America and the States of California, Illinois, North Carolina, and Ohio v. Dish Network, L.L.C., the attorneys general from California, Illinois, North Carolina, and Ohio combined resources and utilized an FTC expert witness to analyze millions of call detail records which was critical to successfully proving the government’s case. The court found that Dish had violated federal and state telemarketing and related laws and awarded the plaintiffs $280 million.
  • Explain that federal-state collaboration has similarly allowed the FTC to take advantage of the broader array of remedies available under state consumer protection laws and that it has given the FTC access to state investigative resources, witnesses, and expertise. For example, on August 30, 2022, Attorney General Bonta, along with the FTC and five other state attorneys general, announced a lawsuit against Roomster, a roommate- and room-finding app, for violations of state and federal consumer protection laws.
  • Detail how the U.S. Supreme Court’s AMG Capital Management, LLC v. Federal Trade Commission decision negatively impacts effective collaboration between the states and the FTC. The decision held that Section 13(b) of the FTC Act did not provide the Commission with the authority to obtain consumer restitution in certain cases.

In submitting the comment letter, Attorney General Bonta joins the attorneys general of Arizona, Colorado, Connecticut, Delaware, Florida, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Vermont, Washington, Wisconsin, and American Samoa and the District of Columbia. 

A copy of the comment letter can be found here.

Attorney General Bonta Issues Legal Guidance for Local Governments Attempting to Skirt State Housing Laws

July 17, 2023
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

OAKLAND – California Attorney General Rob Bonta today issued legal guidance to local governments, reminding them of the strict requirements under state law for enacting so-called “urgency zoning ordinances.” The Housing Justice Team within the California Department of Justice has observed that some local jurisdictions have responded to state housing laws passed in recent years by enacting urgency zoning ordinances in an apparent attempt to limit or circumvent state housing mandates. Under California Government Code Section 65858, urgency zoning ordinances require written “legislative findings that there is a current and immediate threat to the public health, safety, or welfare” demanding immediate action. In today’s guidance, Attorney General Bonta underscores that local governments should review any urgency zoning ordinances they have enacted, or are considering enacting, for compliance with those limited emergency circumstances. 

“Under California law, urgency zoning ordinances can only be enacted if a high bar is met. Unfortunately, we are seeing urgency zoning ordinances that fall short of meeting that high bar,” said Attorney General Bonta. “As I’ve said time and again, every community must do its part to build housing — unless there's a real emergency, they cannot use urgency zoning ordinances to stop housing developments. I encourage local governments take a good look at their urgency zoning ordinances for compliance with the guidance we are providing today. My office is committed to taking legal action against those who frustrate California's goals of increasing housing supply and affordability.”

Among the state housing laws providing for streamlined approval of certain housing developments are Senate Bill 9 (SB 9) and Assembly Bill 2011 (AB 2011). Under SB 9, local agencies must provide a “ministerial” approval process for any proposed duplex within a single-family residential zone, or for any proposed lot split of a single-family residential parcel. Under AB 2011, which took effect July 1, 2023, “ministerial” review is similarly required for affordable housing projects located in commercial zones. Ministerial review is where a public official, such as local planning staff, ensures that the proposed development meets all the applicable objective standards for the proposed action but uses no special discretion or judgment in reaching a decision.

In today's guidance, Attorney General Bonta includes the following information:

  • Written legislative findings are required to support claims that SB 9 or AB 2011’s requirements could pose a threat to public health, safety, or welfare. Such findings must be made with specificity; otherwise, an urgency zoning ordinance is likely invalid. Laws requiring ministerial approval of housing development, such as SB 9 or AB 2011, do not by themselves constitute a current and immediate threat to public health, safety, or welfare. Generalized concerns about visual or aesthetic standards are insufficient to support an urgency ordinance.
  • In addition, urgency zoning ordinances must demonstrate immediate need, meaning that local agencies face immediate threats.
  • To keep an urgency zoning ordinance prohibiting multifamily housing in place beyond 45 days, local jurisdictions must identify a significant, quantifiable, direct, and unavoidable impact based on objective policies in existence at the time the ordinance is adopted. Local jurisdictions must also demonstrate that there is no feasible alternative that would mitigate or avoid the adverse impact “as well or better, with a less burdensome or restrictive effect,” than the urgency ordinance.

Attorney General Bonta is committed to enforcing California’s housing laws and ensuring that communities throughout the state work in good faith to build their fair share of housing. On November 3, 2021, he announced the creation of a Housing Justice Team within the California Department of Justice. On April 1, 2022, he issued a consumer alert reminding California’s tenants of their rights and protections under state law. On July 13, 2022, he issued legal guidance about steps law enforcement officers should take to prevent and respond to unlawful lockouts and self-help evictions. On March 9, 2023, he filed a lawsuit against the City of Huntington Beach for violating state housing laws. On May 1, 2023, he filed a lawsuit against the City of Elk Grove, challenging the city’s denial of a proposed supportive housing project in the city’s Old Town Special Planning Area. On June 16, 2023, he announced a settlement against Green Valley Corporation, a San Jose-based housing developer and property manager, to resolve allegations that the company violated the California Tenant Protection Act by issuing unlawful rent increases to nearly 20 of its employee tenants and serving unlawful eviction notices to six of those employee tenants. On June 27, 2023, he announced filing a comment letter that identifies serious legal issues concerning the proposed Airport Gateway Specific Plan in the Inland Empire Cities of Highland and San Bernardino.

A copy of the guidance can be found here.

Attorney General Bonta Applauds Department of Education’s Strongest-Ever Proposed Gainful Employment Rule

June 21, 2023
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

OAKLAND — California Attorney General Rob Bonta today led a coalition of 21 attorneys general in submitting a comment letter to the U.S. Department of Education, applauding its strongest-ever proposed Gainful Employment Rule. Originally issued by the Obama Administration in 2012, the Gainful Employment Rule aims to protect students by, among other things, establishing expectations that graduates of for-profit colleges and of career-training programs at nonprofit colleges earn enough money to meaningfully pay back their federal student loans. In doing so, the Gainful Employment Rule also protects taxpayers by ensuring that low-quality programs — largely concentrated at for-profit institutions — are cutoff from access to taxpayer funds in the form of federal student aid. Former Education Secretary Betsy DeVos was hostile to the Obama-era Gainful Employment Rule and repealed the entire Rule in 2019. The Biden Administration is now proposing a new Gainful Employment Rule that strengthens federal efforts to hold accountable predatory colleges.

“It's a no-brainer: any institution that wants access to federal financial aid must provide some value to its students,” said Attorney General Bonta. “With its proposed Gainful Employment Rule, the U.S. Department of Education is taking bold, necessary action to make that goal a reality. I commend Education Secretary Miguel Cardona and the Biden Administration, and I look forward to continuing to work with them to ensure our students are not taken advantage of by unscrupulous for-profit schools.”

Under the Higher Education Act, post-secondary institutions are required to “prepare students for gainful employment in a recognized occupation.” If an institution does not, it risks losing access to federal financial aid. The U.S. Department of Education announced its latest proposed Gainful Employment Rule on May 17, 2023 and requested public comment. Today’s letter responds to that request.

In its proposed Gainful Employment Rule, the U.S. Department of Education would establish the following protections:

  • A debt-to-earnings ratio that post-secondary institutions must pass. This includes a requirement that graduates must earn more than a typical high-school graduate in the state between the ages of 25 and 34.
  • An expansion of disclosure requirements — such as a new website that would provide students and their families with information on the costs of a particular program, how much they are likely to earn after graduation, and typical borrowing amounts in federal and private loans — to empower them to make informed decisions; and
  • A requirement that schools certify they are in compliance with certain state consumer-protection laws.

In their comment letter, the attorneys general commend the above proposals, and also:

  • Urge the U.S. Department of Education to both expand and clarify its proposed requirements regarding institutional compliance with state consumer-protection laws by, among other things, requiring schools that offer programs in multiple states to comply with all state consumer-protection laws in each state where the school enrolls students; and
  • Urge the U.S. Department of Education to limit any relaxation of standards within the Gainful Employment Rule — like the decreased earnings threshold it is proposing for programs serving students in economically disadvantaged locales — to avoid institutional abuse. The attorneys general underscore that online programs, which can provide instruction to students outside a particular locale, should not be subject to any such reductions.

In submitting the comment letter, Attorney General Bonta was joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, the District of Columbia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Washington, and Wisconsin.

A copy of the comment letter can be found here.

Attorney General Bonta Files Brief in Defense of California Laws Protecting Consumers from False and Misleading Advertising

January 31, 2023
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

OAKLAND – Attorney General Bonta filed an amicus brief in the Ninth Circuit Court of Appeals in defense of California laws protecting consumers from false and misleading advertising. The brief was filed in support of the plaintiff in Souter v. Edgewell Personal Care Co, who alleged in a false advertising lawsuit that defendants’ Wet Ones Antibacterial Hand Sanitizing Wipes do not in fact “kill 99.99% of germs” as their labels claim. Plaintiff alleged that the products are in fact ineffective against many common, harmful viruses, and bacteria.

“It is challenging enough for consumers to make healthy, well-informed purchasing decisions without worrying that advertisers might be making deceptive claims about their products,” said Attorney General Bonta. “When companies make claims about their products, they have a responsibility to ensure those claims are fully accurate, and when consumers raise plausible allegations that advertising is misleading, they have a right to their day in court. I urge the Ninth Circuit to reverse the district court’s decision and allow this case to move forward.”

The case is currently being heard on appeal in the Ninth Circuit of appeal. The case was originally presented before the United States District Court for the Southern District of California, but the district court dismissed the plaintiff’s claims that the manufacturer had engaged in deceptive advertising. In the brief, Attorney General Bonta argues that the district court erred in dismissing the case prior to receiving evidence, and failed to properly consider real-world consumer behavior in reaching its decision. The brief takes no position on the ultimate outcome of the case at trial. 

In the brief, Attorney General Bonta argues the district court erred in dismissing Souter’s case for two reasons. First, deceptive advertising claims generally present questions of fact that are not appropriate for dismissal in the initial stages of litigation, except in rare circumstances not present here. Second, courts must consider how reasonable consumers actually behave in the real-world context in which they make every day purchasing decisions. As cited in the Psychological Foundations of Marketing, “the average package only has one tenth of a second to make an impression on the shopper.”  Reasonable consumers prioritize easily accessible information right in front of them over additional or contradictory information that might require research or expertise. 

Attorney General Bonta is committed to enhancing consumer protections. In March 2022, the Attorney General filed a similar brief in Moreno v. Vi-Jon, LLC, a case centering around false advertising relating to claims made on the front and back labels of Vi-Jon’s hand sanitizer products. 

A copy of the amicus brief is available here.

Attorney General Becerra Issues Consumer Alert on Price Gouging Following State of Emergency Declaration in Sonoma and Los Angeles Counties

October 25, 2019
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SACRAMENTO – California Attorney General Xavier Becerra today issued a consumer alert following the Governor’s declaration of a state of emergency in Sonoma and Los Angeles Counties due to the Kincade and Tick fires. Attorney General Becerra reminds all Californians that price gouging during a state of emergency is illegal under Penal Code Section 396.

“Families in Sonoma and Los Angeles Counties are in the midst of dealing with devastating wildfires. They shouldn’t have to worry about whether they’re being illegally cheated out of fair prices,” said Attorney General Becerra. “Our State’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies. I encourage anyone who has been the victim of price gouging, or who has information regarding potential price gouging, to immediately file a complaint through my Office’s website or call (800) 952-5225, or to contact their local police department or sheriff’s office.” 

California law generally prohibits charging a price that exceeds, by more than 10 percent, the price of an item before a state or local declaration of emergency. This law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline. The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business.

Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local district attorneys can enforce the statute.

 

Attorney General Becerra Issues Consumer Alert on Price Gouging Following State of Emergency in Los Angeles and Riverside Counties

October 11, 2019
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SACRAMENTO – California Attorney General Xavier Becerra today issued a consumer alert following the Governor’s declaration of a state of emergency in Los Angeles and Riverside Counties due to several fires, including the Saddleridge, Eagle, Sandalwood, Reche, and Wolf fires. Attorney General Becerra reminds all Californians that price gouging during a state of emergency is illegal under Penal Code Section 396.

“Families in Los Angeles and Riverside counties are dealing with devastating and destructive fires threatening their homes and safety,” said Attorney General Becerra. “These communities shouldn’t have to worry about being cheated while dealing with the effects of these emergencies. Our State’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies. I encourage anyone who has been the victim of price gouging, or who has information regarding potential price gouging, to immediately file a complaint through my Office’s website or call (800) 952-5225, or to contact their local police department or sheriff’s office.”

California law generally prohibits charging a price that exceeds, by more than 10 percent, the price of an item before a state or local declaration of emergency. This law applies to those who sell food, emergency supplies, medical supplies, building materials, and gasoline. The law also applies to repair or reconstruction services, emergency cleanup services, transportation, freight and storage services, hotel accommodations, and rental housing. Exceptions to this prohibition exist if, for example, the price of labor, goods, or materials has increased for the business.

Violators of the price gouging statute are subject to criminal prosecution that can result in a one-year imprisonment in county jail and/or a fine of up to $10,000. Violators are also subject to civil enforcement actions including civil penalties of up to $2,500 per violation, injunctive relief, and mandatory restitution. The Attorney General and local district attorneys can enforce the statute.