Consumer Protection

OAKLAND — California Attorney General Rob Bonta today issued the following statement regarding the firing of Gail Slater, head of the U.S. Department of Justice Antitrust Division, an action that continues the Trump Administration’s relentless attacks on the federal watchdogs responsible for keeping life affordable for Americans:

“From President Trump’s efforts to dismantle the CFPB, to instituting tariffs that have raised prices on nearly everything, and now, firing the head of the federal DOJ’s antitrust office tasked with protecting fairness in the marketplace, it’s abundantly clear: The Trump Administration is more concerned with protecting corporate interests than making life affordable for American families. While our billionaire President may dismiss 'affordability' as a hoax, people across the nation are being forced to pay increasingly higher bills with increasingly emptier wallets. Allowing big corporations to raise prices and push competitors out of the marketplace with impunity will only worsen this crisis. While the federal government has abdicated its responsibility to look out for people’s economic wellbeing — in California, we never will. My office has led the nation in consumer protection and antitrust work for decades, and we will continue to do so. While President Trump is abandoning the economy that everyday Americans experience, we are standing up to tackle America's affordability crisis.”

Antitrust enforcement is an essential component of a healthy economy. Competitive marketplaces established through antitrust vigilance help consumers by ensuring fair prices for goods and services, an array of products to choose from, quality goods and services, and the steady introduction of innovative new products. As part of the Attorney General’s commitment to enforce antitrust laws, the California Department of Justice has launched an Antitrust Complaint Form for people to report anticompetitive conduct that potentially violates the antitrust laws.

Second enforcement action stemming from 2024 investigative sweep of streaming services 

OAKLAND — California Attorney General Rob Bonta today announced a settlement with the Walt Disney Company (Disney), resolving allegations that the company violated the California Consumer Privacy Act (CCPA) by failing to fully effectuate consumers’ requests to opt-out of the sale or sharing of their data across all devices and streaming services associated with consumers' Disney accounts. Under today’s settlement, Disney must pay $2.75 million in civil penalties and must implement opt-out methods that fully stop Disney’s sale or sharing of consumers’ personal information. 

“Consumers shouldn’t have to go to infinity and beyond to assert their privacy rights. Today, my office secured the largest settlement to date under the CCPA over Disney's failure to stop selling and sharing the data of consumers that explicitly asked it to,” said Attorney General Bonta. “California’s nation-leading privacy law is clear: A consumer’s opt-out right applies wherever and however a business sells data — businesses can’t force people to go device-by-device or service-by-service. In California, asking a business to stop selling your data should not be complicated or cumbersome. My office is committed to the continued enforcement of this critical privacy law.”

The California Department of Justice’s investigation into Disney stems from a January 2024 investigative sweep of streaming services for potential CCPA violations. Effective opt-out is one of the bare necessities of complying with CCPA. The investigation found that Disney’s opt-out processes did not allow a consumer — even when logged into their account — to completely opt-out of and stop all sale or sharing of their data, in violation of the CCPA. Specifically, the investigation found that each of the methods Disney provided had key gaps that allowed Disney to continue to sell and share consumers’ data, including: 

Opt-Out Toggles: If a user requested to opt-out of the sale or sharing of their data via an opt-out toggle in Disney’s websites and apps, Disney only applied the request to the specific streaming service the user was watching, and often only the specific device the consumer was using. This meant that in most instances, using the toggle would not stop selling or sharing from other devices or services connected to the consumer’s account.

Webform: If a user opted out using Disney’s webform, Disney only stopped the sharing of personal data through the company’s own advertising platform and offerings. However, Disney continued to sell and share consumer data with specific third-party ad-tech companies whose code Disney embedded in its websites and apps. Disney also failed to provide an in-app, opt-out method in many of its connected TV streaming apps, instead directing consumers to its webform, effectively leaving consumers with no way to stop Disney’s selling and sharing from these apps.

The Global Privacy Control: For consumers who opted out via the Global Privacy Control (GPC), Disney limited the request to the specific device the consumer was using, even when the consumer was logged into their account. The GPC is an easy-to-use ‘stop selling or sharing my data switch’ that is available on some internet browsers or as a browser extension. 

The California Consumer Protection Act

The CCPA has opened up a whole new world of privacy protection and increased privacy rights for California consumers, such as the right to know how businesses collect, share, and disclose their personal information. The CCPA vests California consumers with control over the personal information that businesses collect about them, including the right to request that businesses stop selling or sharing their personal information. To learn more about opting out, please see here.

Attorney General Bonta is committed to the robust enforcement of California’s nation-leading privacy law. Today’s settlement represents the seventh enforcement action under the CCPA. Attorney General Bonta has also announced settlements with Sephora and DoorDash as well as mobile app gaming company, Jam City; streaming service, Sling TV; website publisher, Healthline.com; and entertainment company, Tilting Point Media. In order to monitor the businesses’ compliance with the CCPA, Attorney General Bonta has conducted investigative sweeps related to location data, streaming apps and devices, employee information, and surveillance pricing.

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

SACRAMENTO — California Attorney General Rob Bonta today issued the following statement in response to Governor Gavin Newsom signing into law Senate Bill 694 (SB 694), critical legislation sponsored by the Attorney General to protect veterans from claim sharks. Attorney General Bonta has been steadfast in getting legislation passed to shield veterans from financial exploitation. In 2024, he sponsored Senate Bill 1124, a previous iteration of this bill. SB 694, authored by Senator Bob Archuleta (D-Pico Rivera), Senator Sabrina Cervantes (D-Riverside), and Assemblywoman Pilar Schiavo (D-Santa Clarita), underscores that it is unlawful for claim sharks to obtain unauthorized access to the U.S. Department of Veterans Affairs (VA) claims system using a veteran's login information, and prohibits the charging of fees that exceed what a VA-accredited attorney or claims agent can legally charge to represent a veteran with a benefits claim. California and its counties have led the way in ensuring that California veterans and their families have access to multiple options for free assistance with initial benefits claims. 

“Today, I am proud to stand with a coalition of veterans organizations in celebration of the signing of SB 694, legislation that continues our commitment to vigorously protect those who have sacrificed so much to protect us," said Attorney General Rob Bonta. “Claim sharks pose a financial risk to veterans who need help with their benefits claims. SB 694 will degrade and deter the ability of these predatory individuals or companies to exploit veterans seeking help accessing their benefits. I thank Senators Archuleta and Cervantes, and Assemblywoman Schiavo, for authoring this legislation and Governor Newsom for signing it into law and making it clear: If you want to charge veterans for help with their benefits claims, you must be accredited by the VA."

"It is an honor to stand alongside Attorney General Rob Bonta, my Assembly counterpart as Chairs of the Military and Veterans Affairs Committees, and all those who supported us in protecting our veterans, who have already given up so much in service to their country," said Senator Bob Archuleta. "With the signing of SB 694, California makes it clear that it will not stand for the abuse and exploitation of its veterans. Most importantly, it reaffirms our commitment to upholding the rule of law.”

“As Chair of the Assembly Military and Veterans Affairs Committee, in partnership with the Attorney General, veterans, and so many more, we fought to protect disabled veterans from illegal fees charged by predatory claims sharks," said Assemblywoman Pilar Schiavo. " Veterans who earned their disability benefits through service and great sacrifice deserve every penny, and with the Governor’s signature of SB 694, the Attorney General will be able to take action to protect our veterans and hold these greedy predatory corporations accountable.” 

Claims sharks are individuals and organizations that are not accredited by the U.S. Department of Veterans Affairs (VA) and charge veterans for representation or other services in connection with their benefits claims, often promising a faster claims process or guaranteed benefit increases. While some unaccredited individuals and organizations are well-intentioned, many are predatory and charge exorbitant fees for subpar or worthless services and operate outside of the VA accreditation system and the oversight, fee caps, and other consumer protections that it provides to veterans. 

California veterans who need assistance with filing an initial claim for benefits can receive assistance at no charge from their county veteran service office, working in partnership with the California Department of Veterans Affairs, an accredited veteran's organization, or from another VA accredited representative. Attorneys and claims agents with current VA accreditation can also represent veterans before the VA and assist with benefit claims. VA-accredited agents must pass a certification exam that tests their knowledge, have to pass a background check, and complete ongoing training. The fees that VA-accredited attorneys and agents can charge are capped by law, and they are subject to discipline — including revocation of their accreditation — if they don’t represent their clients competently and in accordance with the law.  

Specifically, SB 694 will:

• Prohibit any person from being paid for work related to the preparation, presentation, or prosecution of any claim for federal veterans’ benefits unless they are accredited by the VA as an attorney or claims agent.
• Make it a crime for claim sharks to access VA computer systems using a veteran’s login information.
• Make it illegal for any person to charge a fee for assistance with a veteran’s benefits claim that exceeds the fee that could be lawfully charged by a VA-accredited attorney or claims agent for those services. 

If you see hawking — or suspicious ticket reselling — be a patriot and submit a complaint

OAKLAND — Ahead of Super Bowl LX, taking place in Santa Clara, California, California Attorney General Rob Bonta today issued a consumer alert warning football fans of counterfeit Super Bowl tickets and scammers. In today’s alert, Attorney General Bonta reminds Californians to exercise caution in their online transactions and provides tips to avoid falling victim to ticket scams. 

“We all enjoy going to live shows and games to see our favorite artists or sports teams, but unfortunately scammers prey on our excitement,” said Attorney General Bonta. “Today I remind Californians: If you see hawking — or suspicious ticket reselling — protect yourself by following the tips we provide. If you have fallen victim to a scam or suspect fraudulent activity, be a patriot and submit a complaint. You can file a report with my office at oag.ca.gov/report as well as the Better Business Bureau and the FBI’s Internet Complaint Center.” 

Protect Yourself from Ticket Scams: 

• Purchase tickets from authorized vendors: When possible, always purchase your tickets directly from official websites to confirm the ticket's authenticity.
• Know the refund policy: Before purchasing third-party resale tickets, look into the reseller’s refund policy and whether they offer a guarantee regarding the authenticity and timely arrival of the tickets.
• Protect your personal information: Never provide personal information, such as your Social Security number or bank account number to prevent financial loss and fraud.
• Verify the web address safety: Double-check the website URL by ensuring the link starts with “https://” and has a padlock icon to ensure your credit card and billing information remain safe.
• Do your research: Search for online reviews regarding the seller and any potential customer complaints for prior scams.
• Use secure payment methods: Consider using your credit card to ensure that you have an opportunity to dispute fraudulent charges. Avoid using instant payment platforms like Zelle, Venmo, and Cash App, or you could risk never getting your money back. Do not pay for tickets with gift cards, prepaid debit cards, wire transfers, or cryptocurrency. Demands for payment using those methods are a strong warning sign of a scam.
• Be wary of overly discounted tickets: Be extra cautious with low-priced and/or hard-to-get tickets. If the price seems too good to be true, it probably is. 

If consumers have fallen victim to a ticket scam, they can file a complaint with our office at oag.ca.gov/report. Consumers can also report the incident to the Better Business Bureau and the FBI’s Internet Complaint Center.

Californians have the right to understand whether their data is being used to set individual prices they pay for items like groceries 

OAKLAND — In honor of Data Privacy Day, California Attorney General Rob Bonta today announced an investigative sweep focused on businesses’ use of consumers’ personal information to set targeted, individualized prices for products and services, a practice known as surveillance pricing. Surveillance pricing practices may trigger obligations under and even violate the California Consumer Privacy Act (CCPA), which includes a “purpose limitation principle” that limits a business’s use of personal information to purposes that are consistent with the reasonable expectations of consumers. Businesses that use data in ways that targeted consumers might not expect — including by using that data to set individualized prices — may be violating California law. As part of the sweep, the California Department of Justice is sending letters to businesses with significant online presence in the retail, grocery, and hotel sectors. The letters request information regarding how businesses use consumers’ shopping and internet browsing history, location, demographics, inferential, or other data to set the prices of goods or services.

“Consumers have the right to understand how their personal information is being used, including whether companies are using their data to set the prices that Californians pay, whether that be for groceries, travel, or household goods. We need to know whether businesses are charging people different prices for the same good or service — and if they’re complying with the law. Today, my office is launching a formal inquiry and will ask prominent businesses in the retail, grocery, and hotel sectors to provide my office with information so we can understand how these companies are using personal data,” said Attorney General Bonta. “Practices like surveillance pricing may undermine consumer trust, unfairly raise prices, and when conducted without proper disclosure or beyond reasonable expectations, may violate California law. On Data Privacy Day and every day, my office is committed to enforcing the CCPA and ensuring that businesses are transparent, fair, and accountable in their use of consumer data.”

The letters will request information including:

• Companies’ use of consumer personal information to set prices.  
• Policies and public disclosures regarding personalized pricing.
• Any pricing experiments undertaken by companies. 
• Measures companies are taking to comply with algorithmic pricing, competition, and civil rights laws.  

What is Surveillance Pricing: 

Surveillance pricing is the use of a consumer’s personal information to set targeted, individualized prices for a product or service. As a result, consumers buying the same product or service at the same time from the same business may be offered different prices. Unless a business discloses that it uses a consumer’s personal information to set prices, surveillance pricing may be invisible to the consumer, as consumers usually cannot and do not consult with each other to compare the prices they have been offered.

In recent years, media reports and regulators alike have sounded the alarm on the possibility of the existence of surveillance pricing. In July 2024, the Federal Trade Commission (FTC) sought information on surveillance pricing from eight companies that provided surveillance pricing products to businesses. Last year, before the change in federal administration, the FTC published a summary of its research. Since then, the Trump Administration’s FTC has closed public comment on a request for information regarding retailers’ use of surveillance pricing, illustrating another example of the Trump Administration’s abandonment of critical consumer protection work. A 2025 Consumer Reports investigation into the grocery delivery company, Instacart, found that some grocery prices differed by as much as 23% per item from one Instacart customer to the next. According to the investigation, price variations for the same products ranged from as little as seven cents to $2.56 per item. Instacart has since publicly stated that it has stopped offering technology that allowed grocery retailers to charge shoppers different prices for the same groceries at the same time.

The California Consumer Privacy Act (CCPA): 

The CCPA is a landmark law that secures increased privacy rights for California consumers, including the right to know how businesses collect, share, and utilize their personal information. Businesses that are subject to the CCPA have several responsibilities, including responding to consumer requests to exercise these rights and giving consumers certain notices explaining their privacy practices. Under the CCPA’s “purpose limitation” principle, businesses are limited in their use of personal information to purposes that are consistent with the reasonable expectations of consumers.  

Attorney General Bonta is committed to the robust enforcement of California’s nation-leading privacy law. Investigative sweeps and inquiries help the California Department of Justice to identify and zero in on compliance issues across industries.  

In 2024, the CCPA investigative sweep focused on the compliance of streaming services and connected TVs, and last year, Attorney General Bonta announced a settlement with Sling TV that arose from this sweep. In August 2022, the Attorney General announced a settlement with Sephora resolving allegations that arose from a sweep of companies that appeared to be out of compliance with the user-enabled privacy control (GPC) signal to stop the sale of personal information. Other investigative sweeps have related to the location data industry, employee information, opt-out requests on mobile apps, and business loyalty programs.

In November 2025, Attorney General Bonta announced a $1.4 million settlement with Jam City resolving allegations that the mobile app gaming company violated the CCPA by failing to offer consumers methods to opt-out of the sale or sharing of their personal information across its popular gaming apps. In July 2025, Attorney General Bonta announced a $1,550,000 settlement with website publisher Healthline Media LLC, resolving allegations that its use of online tracking technology on its health information website violated the CCPA. In 2024, Attorney General Bonta and Los Angeles City Attorney Hydee Feldstein Soto announced a $500,000 settlement with Tilting Point Media LLC resolving allegations that the company violated the CCPA and federal law by collecting and sharing children’s data without parental consent in their popular mobile app game “SpongeBob: Krusty Cook-Off.”  In 2024, Attorney General Bonta announced a settlement with DoorDash, resolving allegations that the company violated the CCPA and COPPA by selling 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, consumers can submit a complaint online at oag.ca.gov/report.

Potential victims of xAI can file a complaint at oag.ca.gov/report

OAKLAND — California Attorney General Rob Bonta today announced opening an investigation into the proliferation of nonconsensual sexually explicit material produced using Grok, an AI model developed by xAI. xAI appears to be facilitating the large-scale production of deepfake nonconsensual intimate images that are being used to harass women and girls across the internet, including via the social media platform X. 

“The avalanche of reports detailing the non-consensual, sexually explicit material that xAI has produced and posted online in recent weeks is shocking. This material, which depicts women and children in nude and sexually explicit situations, has been used to harass people across the internet. I urge xAI to take immediate action to ensure this goes no further. We have zero tolerance for the AI-based creation and dissemination of nonconsensual intimate images or of child sexual abuse material,” said Attorney General Bonta. “Today, my office formally announces an investigation into xAI to determine whether and how xAI violated the law. As the top law enforcement official of California tasked with protecting our residents, I am deeply concerned with this development in AI and will use all the tools at my disposal to keep California’s residents safe.”

Over the past weeks there have been numerous news reports of Grok users taking ordinary images of women and children available on the internet and using Grok to depict these people in suggestive and sexually explicit scenarios and “undress” them, all without the subjects’ knowledge or consent. xAI developed Grok’s image generation models to include what the company calls a “spicy mode,” which generates explicit content. The company has used this mode as a marketing point for the company, and it has unsurprisingly resulted in the proliferation of content that sexualizes people without their consent.

Grok-generated images are being used to harass public figures and ordinary social media users alike. Most alarmingly, news reports have described the use of Grok to alter images of children to depict them in minimal clothing and sexual situations. xAI has also reportedly produced photorealistic images of children engaged in sexual activity. Use of Grok for these purposes appears to be happening on a large scale. According to one analysis, more than half of the 20,000 images generated by xAI between Christmas and New Years depicted people in minimal clothing, and some of those appeared to be children. 

Attorney General Bonta is deeply concerned about the harms of chatbots and remains committed to ensuring AI safety, especially when it comes to protecting California’s children. This is an area where he has been very involved, including by supporting state legislation aiming to protect children from AI companion chatbots and by directly engaging with AI companies.  

In September, Attorney General Bonta and Delaware Attorney General Jennings met with OpenAI expressing their deep concern over increased reports of how OpenAI’s products interact with young people. In August, AG Bonta sent a letter to 12 of the top AI companies, after reports of sexually inappropriate interactions between AI chatbots and children. In the letter, the attorneys general make it clear to the companies that states throughout the nation are paying close attention to how companies craft their policies surrounding AI safety and highlight that as entities that benefit from children’s engagement with their products, these companies have a legal obligation to children as consumers. In 2023, Attorney General Bonta joined a bipartisan coalition of 54 states and territories in sending a letter to Congressional leaders  calling for the creation of an expert commission to study how AI can be used to exploit children through child sexual abuse material (CSAM). 

Attorney General Bonta has time and time again defended California's right to protect residents from risks posed by AI technology. He is proud to have opposed the first proposal for an AI regulation ban — which Congress ultimately struck down — and remains committed to defending our state's laws amid the Trump Administration's attempts to hobble states' right to protect their residents and foster safe AI technology.

Settlement doubled in value after AG Bonta demanded a better deal for consumers

OAKLAND — California Attorney General Rob Bonta today commended the preliminary approval of a new class action settlement and related resolution of claims by the attorneys general that, if approved by the court, will require Capital One to provide $425 million in restitution and better interest rates for its 360 Savings customers who were cheated out of higher interest payments on their savings accounts for years. Last year, Attorney General Bonta joined a bipartisan coalition of attorneys general in opposing an earlier proposed class action settlement that did not deliver enough for Capital One customers who were wronged. This new settlement more than doubles the value of the earlier one. The resolution, preliminarily approved this week, includes an order resolving related claims by California, Maryland, Massachusetts, Minnesota, Nevada, New York, Ohio, and Rhode Island, giving those states the authority to enforce payment of consumer relief, and stopping Capital One from making false or deceptive statements or otherwise violating state consumer protection laws pertaining to interest rates provided by the bank’s deposit accounts. This resolution follows the Consumer Financial Protection Bureau's (CFPB) dismissal of a related enforcement action against the company and underscores the value of continued attorney general enforcement efforts in the wake of the Trump Administration’s cuts to the CFPB. 

“Capital One misled consumers through false marketing and a lack of transparency regarding its savings account system, cheating consumers nationwide. Given an opportunity to make loyal customers whole, Capital One sank their teeth in even more, attempting to underpay people it harmed and continue its deceptive practices," said Attorney General Bonta. "My office proudly stepped in and called this out for what it was: unacceptable and hopelessly inadequate. California consumers deserve a fair deal and someone fighting in their corner. We celebrate a settlement of more than double what was initially brought to the table. I thank my friend and colleague, New York Attorney General Letitia James, for leading this effort and taking further action to hold Capital One accountable.”

Capital One marketed its 360 Savings accounts as “high interest” accounts with “one of the nation’s best savings rates” that would earn its customers more than an average savings account. However, while interest rates rose nationwide beginning in 2022, Capital One kept the interest rates for its 360 Savings accounts artificially low. This saved Capital One nearly $3 billion in interest. Instead, Capital One created “360 Performance Savings,” a nearly identical type of savings account that provided much higher interest rates than 360 Savings — at one point, more than 14 times higher.

In September, Attorney General Bonta joined a bipartisan coalition of attorneys general in filing an amicus brief opposing a proposed class action settlement that would have shortchanged 360 Savings customers. The proposed settlement would have delivered less than $300 million in restitution payments and $125 million in future additional interest payments while allowing Capital One to continue to underpay 360 Savings customers’ interest. After Attorney General Bonta and the coalition raised objections to this settlement, the court rejected it.

Capital One has now agreed to a new settlement that would deliver substantially more for 360 Savings customers. The settlement, which was preliminarily approved by the court this week, will require Capital One to pay $425 million in restitution. The settlement will also require Capital One to match 360 Savings and 360 Performance Savings interest rates, erasing the misleading two-tiered system of accounts and providing an estimated $530 million to consumers nationwide in future additional interest.

Rolling back oversight risks financial calamity, repeating conditions that led to Great Recession

OAKLAND — California Attorney General Bonta joined a coalition of 16 attorneys general in filing a comment letter strongly opposing a proposed rule from the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) that would significantly limit federal banking regulators’ authority to supervise banks and enforce banking laws. The proposed rule undermines vital consumer protections and effectively abandons the federal government’s responsibility to police unsafe or risky conduct from banks, especially at a time when the U.S. is experiencing new financial products and innovations. This proposal continues the Trump Administration’s attempt to shirk its responsibility to protect Americans and leave consumers on their own to fend off potentially harmful actions from their banks. 

“Proactive and robust supervision of banks is crucial for our nation’s financial health and to protect the millions of Americans who rely on our financial system. Now, the Trump Administration is attempting to remove enforcement tools from the regulators who ensure that the banks where we keep our savings and deposit our checks are acting responsibly,” said Attorney General Bonta. “The Trump Administration is ignoring the lessons of the Great Recession, making the same mistakes that nearly crashed our economy and upended the lives of Americans nationwide. Weakening supervision over banks is indefensible and puts working people and our economy at serious risk — I urge the Administration to reverse course.”  

Less than 20 years after the Great Recession, active supervision of state and national banks remains essential to keep U.S. financial markets safe and stable. The purpose of bank supervision is to promote a safe, sound, and efficient banking system that supports a strong economy. The purpose is not to protect the banks themselves; rather, it is to protect Americans who rely on banks for deposit, safekeeping, and transmissions of money. Effective bank supervision includes identifying and addressing weaknesses before they threaten the financial stability of banks and possibly spread through the financial system. For example, recent bank supervision identified issues with potentially illegal overdraft fees and led to consumer refunds of nearly $250 million.  

The proposed rule scraps this proactive approach and continues the Trump Administration’s abandonment of consumer protection work, this time by giving up the responsibility of monitoring and identifying unsafe or risky behavior at the country’s largest financial institutions. 

In the letter, the attorneys general argue that the proposed rule should be dismantled because it:

• Unwinds banking protections put in place by Congress to ensure federal banking regulators address significant consumer protection issues.  
• Undermines effective supervision by abandoning, without justification, a proactive approach for one in which banking regulators cannot issue supervisory warnings for practices that could result in bank or consumer harm. 
• Prohibits banking regulators from looking at significant threats that are not yet imminent, including the rapid rise of new financial products and structures, like cryptocurrency and crypto-adjacent products; private credit offered by hedge funds, private equity firms, and other nonbanks; and the enormous investment to support ongoing development of artificial intelligence.

In submitting the comment letter, Attorney General Bonta joins the attorneys general of New York, Arizona, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, and the District of Columbia. 

Attorney General Bonta is committed to protecting consumers in the financial marketplace. Last week, he filed a lawsuit challenging the Consumer Financial Protection Bureau’s (CFPB) unlawful decision not to fund the agency’s operations, preventing it from performing legally mandated functions. Shortly after taking office, the Trump Administration launched a campaign of destruction and systemic shuttering of the CFPB, threatening catastrophic harm to hardworking families and consumer financial markets nationwide. Attorney General Bonta has been an outspoken critic amid these attempts and has submitted amicus briefs in Mayor and City Council of Baltimore v. Consumer Financial Protection Bureau and in National Treasury Employees Union v. Vought, lawsuits challenging the Trump Administration’s efforts to dismantle the CFPB.

In October, the CFPB prematurely terminated the consent order that documented its settlement with Citibank for allegedly discriminating against Armenian-American credit card applicants in Southern California, sending a strong message of the Trump Administration’s abandonment of these critical protections for consumers. Attorney General Bonta responded by issuing a consumer alert reminding consumers and lenders that credit discrimination is illegal under both California and federal law and sending a letter to the Trump Administration opposing their plan to eliminate critical rules that help fight discrimination.  

In March, Attorney General Bonta issued a statement after Congress overturned a CFPB rule that would have limited overdraft fees to $5. Typically, banks charge $35 for an overdraft. The rule was expected to have saved Americans billions of dollars each year. 

In April 2024, he supported a rule that would close a regulatory loophole that enables banks to extract billions of dollars from consumers by charging overdraft fees without adequately disclosing basic credit terms. And in February 2024, he warned smaller banks and credit unions that overdraft fees disproportionately penalize lower-income consumers and consumers of color, and may violate consumer protection laws.

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert following the Governor’s declaration of a state of emergency in response to powerful winter storms. A series of atmospheric rivers has brought high-intensity rainfall and strong winds statewide to already saturated soils, heightening the risk of rapidly rising creeks and rivers, flooding, landslides, and debris flows — especially to recently burned areas. In today’s alert, Attorney General Bonta reminds all Californians that price gouging during a state of emergency is illegal under Penal Code Section 396. Californians who believe they have been the victim of price gouging should report it to their local authorities or to the Attorney General at oag.ca.gov/report. To view a list of all price gouging restrictions currently in effect as a result of proclamations by the Governor, please visit the Governor's Office of Emergency Services Price Gouging webpage. 

“As incoming heavy rain and strong winds increase the risk of flooding and landslides, I urge Californians up and down the state to listen to communication from officials and keep safe — especially if you have travel plans this holiday season. California’s price gouging law protects people impacted by an emergency from illegal price gouging on housing, gas, food, and other essential supplies,” said Attorney General Bonta. “If you see price gouging — or if you've been the victim of it — I encourage you to immediately file a complaint with my office online at oag.ca.gov/report or contact your local police department or sheriff’s office.” 

California law generally prohibits charging a price that exceeds, by more than 10%, the price a seller charged for an item before a state or local declaration of emergency. For items a seller only began selling after an emergency declaration, the law generally prohibits charging a price that exceeds the seller's cost of the item by more than 50%. 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.

Violations of the price gouging statute are misdemeanors that are subject to criminal prosecution that can result in imprisonment and/or a fine. They can also result in civil enforcement actions, including civil penalties of up to $2,500 per violation, injunctive relief, and restitution. The Attorney General and local district attorneys and city prosecutors can enforce the statute.

Settlement includes additional compensation for theft-related costs to eligible consumers, free installation of anti-theft update on vulnerable vehicles 

OAKLAND — California Attorney General Rob Bonta today, joined a bipartisan coalition of 36 attorneys general, announced a settlement with Kia America (Kia), Hyundai Motor Company (Hyundai), and affiliated entities for selling millions of cars that contained significant security weaknesses, including a lack of industry-standard, anti-theft technology. These security failures made Hyundai and Kia vehicles easy to hotwire and steal, resulting in a surge of car thefts and joyriding across the country that continues to threaten public safety to this day. The settlement resolves allegations that the companies violated federal motor vehicle safety standards and California’s Unfair Competition Law. Under the proposed settlement, which is pending court review and approval, Hyundai and Kia have agreed to equip all future vehicles sold in the United States with appropriate anti-theft technology and offer ignition cylinder sleeve anti-theft updates, free of charge, to owners or lessees of eligible vehicles. The cylinder sleeve is a physical anti-theft device that prevents vehicle theft by the popular hotwiring method. The settlement also requires Hyundai and Kia to pay additional restitution to eligible consumers whose cars are damaged by thieves.

“Today, my office announced a settlement with Kia and Hyundai for failing to equip millions of cars with industry-standard, anti-theft technology. This led to an epidemic of car thefts that threatened public safety and disrupted the lives of Californians — and it was illegal,” said Attorney General Bonta. “My office stepped in, and as part of our settlement, Hyundai and Kia will install a free security update and further compensate eligible consumers who had their cars damaged by thieves. Cars are often one of the largest purchases a family will ever make — Californians shouldn’t have to worry that manufacturers are cutting corners that could put their purchase at risk.” 

From 2011 to 2022, Kia and Hyundai manufactured and sold cars with easily bypassed ignition locks and without anti-theft devices called engine immobilizers that were a standard feature in almost every other new car manufactured during that period, including the same Hyundai and Kia models sold in Canada and Europe. An engine immobilizer prevents thieves from starting a vehicle’s engine without the vehicle’s “smart” key, which stores the vehicle’s electronic security code. On social media, thieves shared videos demonstrating that even teenagers could exploit the security vulnerability to hotwire Hyundai and Kia cars and challenged others to steal them too. And steal they did: In Los Angeles, for instance, thefts of Hyundai and Kia cars increased by approximately 85% in 2022 and constituted approximately 20% of stolen cars in Los Angeles in 2022, up from 13% in 2021. In 2024, Hyundai and Kia models were the first, second, and fifth most commonly stolen vehicles nationwide. 

The preventable crisis posed a serious threat to public safety and placed higher demands on California’s law enforcement and other first responders. Not only did the number of thefts and attempted thefts of Hyundai and Kia vehicles explode, but many of the stolen vehicles were used in connection with other crimes and were involved in traffic collisions, some fatal. As a result of the security weakness in the vehicles, California consumers have had their vehicles stolen or rendered unusable, incurring significant costs for repairs, towing, and insurance deductibles, and costs associated with alternative transportation. Additionally, because of the security weakness, the resale value of their vehicles has plummeted. 

Hyundai and Kia were slow to respond to the crisis, waiting until 2023 to launch a service campaign to update the software on most of the affected vehicles. While the companies claimed that the software update was effective at preventing the viral theft method, the states alleged that the software update could be — and in fact was — easily bypassed by thieves, and pressed Hyundai and Kia to do more to protect consumers and their communities. 

Under the settlement announced today, Hyundai and Kia have agreed to:

• Equip all future vehicles sold in the United States with industry-standard, engine immobilizer anti-theft technology;
• Offer free zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles, including vehicles that previously were only eligible for the companies’ software updates;
• Provide up to $4.5 million in additional restitution to eligible consumers whose cars are damaged by thieves; and
• Pay $4.5 million to the states to defray the costs of the investigation.

Eligible consumers will be notified by the companies that they will have one year from the date of the notice to make an appointment to have the zinc-reinforced ignition cylinder protector installed at their local Hyundai or Kia authorized dealerships. Attorney General Bonta urges eligible consumers to schedule the installation of the zinc-reinforced ignition cylinder protector as soon as possible.

Consumers who previously received the software update on their vehicles (or were scheduled to do so) but nonetheless experienced a theft or attempted theft of their vehicle on or after April 29, 2025, are eligible to file a claim for compensation for certain theft and attempted-theft related expenses. This compensation is in addition to the monetary payment Hyundai and Kia agreed to provide through a private consumer class action. 

For more information about eligibility and how to submit a claim for compensation, please visit: www.HKMultistateimmobilizersettlement.com

In securing the settlement, Attorney General Bonta joins the attorneys general of Connecticut, Minnesota, New Hampshire, Delaware, Illinois, Maryland, New Jersey, Nevada,  Washington, Arizona, Colorado, the District of Columbia, Florida, Georgia, Hawaii, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, and Wisconsin.

Please see here for a copy of the complaint, and a copy of the proposed judgment.