Consumer Protection

SAN FRANCISCO — California Attorney General Rob Bonta today hosted business leaders on the front lines of the tariff war for a roundtable conversation to discuss the impacts of tariffs on industries across California. The roundtable in San Francisco comes on the heels of California filing a lawsuit against the Trump Administration for its imposition of illegal and chaotic tariffs, and included leaders with a birds-eye view of industries spanning workforce development, global trade, transportation, housing development, and local economies and small businesses. President Trump’s erratic tariffs are wreaking havoc on the U.S. financial system and causing uniquely immense harm to California’s economy, which as the fourth largest economy in the world, remains a major driver of our national economy. 

The tariffs challenged under California’s current lawsuit are projected to shrink the U.S. economy by $178 billion, cost California consumers $25 billion, and result in the loss of over 64,000 jobs throughout California.  

“The Trump Administration’s chaotic tariffs have sent shockwaves through financial markets, businesses, and consumers in every corner of the globe — and especially here in California, home to the fourth largest economy in the world,” said Attorney General Rob Bonta. “Today, I heard from leaders on the front lines concerned about the disastrous impact of tariffs on their industries and businesses. These folks are the bellwethers for our state and have sounded the alarm — I thank them deeply for their time and candor. California will continue to fight on all fronts to end President Trump's illegal tariffs and restore certainty and vibrancy to our economy.” 

"Dramatic shifts in trade policy and increases in tariff costs can cause disruptions which threaten millions of jobs and billions of dollars in local, state and federal tax revenue," said Jennifer Cohen, Vice President of Government Relations for the Pacific Merchant Shipping Association. "It is critical that we avoid volatility and uncertainty in the marketplace that impedes American access to essential goods, components used in US manufacturing, and export markets for agriculture. The importance of maintaining the integrity of the ports and maritime supply chains on the US West Coast that undergird our international commercial relationships are vital to all Americans, not just Californians."

"Uncertainty is never a good thing for businesses of any size, especially those with limited resources who cannot ride out wild fluctuations — particularly in the pricing and availability of goods and services. Small businesses are the heart of our local economies and communities, and operate on razor thin margins. When you combine higher operational costs with the fact that consumers are pulling back on purchases as prices rise, the result is devastating,” said Peter Katz, Co-Chair Silicon Valley Chamber Coalition. “Already, a significant number of family owned restaurants and merchants have seen increased expenses in essential supplies, from food costs to packaging to raw materials. These businesses do not have the luxury of waiting months — or years — for things to normalize."  

Attorney General Bonta is committed to challenging the illegal tariffs that threaten California jobs, businesses, and consumers. On April 16, Attorney General Bonta and Governor Newsom filed a lawsuit challenging President Trump’s unlawful use of power to impose tariffs and direct agencies within the administration to implement and enforce those tariffs without the consent of Congress. Last week, California filed a motion for a preliminary injunction with the U.S. District Court for the Northern District of California to stop the Trump Administration’s illegal tariffs while litigation in their case proceeds and filed an amicus brief in the Court of International Trade in Oregon v. Trump, another case also challenging President Trump’s illegal imposition of tariffs. 

More information about the lawsuit can be found here. 

OAKLAND — California Attorney General Rob Bonta today joined a coalition of 40 attorneys general in sending a letter to Congressional leaders opposing a proposed 10-year ban on states enforcing any state law or regulation addressing artificial intelligence (AI) and automated decision-making systems. The ban was included in the House Energy and Commerce Committee’s changes to the budget reconciliation bill. In the letter, the attorneys general note that the ban, particularly when combined with the lack of any movement toward a federal regulatory framework, would leave this fast-moving area of law and technology completely void of regulation — wiping away any state-level frameworks already in place and effectively depriving consumers of reasonable protections.

“As the fourth largest economy in the world — built in large part on technological innovation and a commitment to protecting our residents — California knows that consumer protections and innovation go hand in hand. Allowing states to be responsive to AI and adopt new protections while still nurturing innovation serves both industry and consumers,” said Attorney General Bonta. “I strongly oppose any effort to block states from developing and enforcing common-sense regulation; states must be able to protect their residents by responding to emerging and evolving AI technology.”

BACKGROUND 

AI systems affect nearly all aspects of everyday life. Businesses use AI systems to evaluate consumers’ credit risk and guide loan decisions, screen tenants for rentals, and target consumers with ads and offers. AI systems are used in the workplace to guide employment decisions, in educational settings to provide new learning systems, and are widespread in health care settings where they’re used to guide medical diagnosis and treatment, healthcare provider operations, and insurance coverage decisions.  

The promise of AI raises exciting and important possibilities. But, like any emerging technology, there are risks to adoption without responsible, appropriate, and thoughtful oversight. AI systems are novel and complex, and their inner workings are often not understood even by developers and entities that use AI, resulting in situations where AI tools have generated false information or biased and discriminatory results. 

In the absence of federal action to install this oversight, states have considered and passed legislation to protect their residents and address a wide range of harms associated with AI and automated decision-making. 

In California, this includes laws to prohibit deep-fakes designed to mislead voters and consumers, require basic disclosures when consumers are interacting with specific kinds of AI, and ensure that doctors supervise AI tools used to make decisions about healthcare services and insurance claims. In January, Attorney General Bonta issued two legal advisories reminding consumers of their rights and advising businesses and healthcare entities who develop, sell, or use AI about their obligations under California law. Although AI technology is developing rapidly, entities must comply with existing California laws, as well as new laws that went into effect on January 1, 2025. 

In sending today’s letter, Attorney General Bonta joins the attorneys general of Colorado, Tennessee, New Hampshire, Vermont, American Samoa, Arizona, Arkansas, Connecticut, Delaware, District of Columbia, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Utah, U.S. Virgin Islands, Virginia, Washington, and Wisconsin. 

A copy of the letter can be found here. 

OAKLAND — California Attorney General Rob Bonta today appealed the Northern District of California’s decision to block enforcement of the Age-Appropriate Design Code Act, in response to a lawsuit brought by an online trade association representing companies such as Google, Meta, Amazon, and Twitter.

“We are deeply concerned about further delay in implementing protections for children online. That is why, today, my office has appealed the Northern District of California’s decision blocking enforcement of the Age-Appropriate Design Code,” said Attorney General Rob Bonta. “I am committed to making social media safer for children by defending California’s commonsense statutes — our kids’ safety cannot wait.”

"Every parent knows that our children are exposed to too much harm online, and they are demanding that tech companies take more responsibility for their actions,” said Assemblymember Buffy Wicks (D-Oakland). “The court’s ruling was a gut punch to families across California, but I’m incredibly grateful to Attorney General Bonta for stepping up and fighting back. His decision to appeal sends a clear message: we won’t let tech giants put profits over the safety of our children. I’m more committed than ever to this fight — and I won’t back down until real protections are in place.”

The California Age-Appropriate Design Code Act is a first-in-the-nation law aimed at safeguarding children online. The act requires that businesses that trade in consumers’ personal information and offer products, services, and features likely to be accessed by children proactively protect their young users’ information and prohibits certain actions that involve the collection and use of that information.

Authored by Assemblymember Buffy Wicks (D-Oakland) and Assemblymember Jordan Cunningham (R-San Luis Obispo), the California Age-Appropriate Design Code Act was signed into law by Governor Gavin Newsom on September 15, 2022. The Legislature unanimously passed the law, finding that more needs to be done to create a safer online space for children to learn, explore, and play. Despite businesses’ awareness that children use their services, businesses currently design their online services to include features that may be harmful to children, including manipulative techniques to prod them to spend hours on end online or provide personal information beyond what is expected or necessary. 

A copy of the notice of appeal can be found here. 

OAKLAND — California Attorney General Rob Bonta today issued a statement amid concerns that the Trump Administration or people associated with the administration engaged in insider trading or other illegal financial transactions, informed by advanced knowledge of non-public information regarding the President’s changes of tariff policy. On April 9, President Trump's decision to ease most tariffs caused the financial markets to predictably skyrocket after crashing and undergoing wild fluctuations since early April, when global tariffs were announced. 

“The President’s actions and potential profit by associates from the chaos and turmoil that cost Americans trillions of dollars is deeply troubling. California consumers and business are concerned amid this uncertainty — as the fifth largest economy in the world, California understands global trade policy is not a game,” said Attorney General Bonta. “From wreaking havoc on 401(k)s and pension funds to making everyday items more expensive — this game he’s playing has very real consequences for everyday Californians. The possibility that the chaos created by the President could also be lining the pockets of his buddies, donors, or family members is even more unconscionable. My office is monitoring the situation and expects the appropriate agencies to investigate potential insider trading."

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert asking Californians to be aware of job recruitment scams. Job recruitment scams occur when bad actors trick job seekers into providing money or personal information by posing as employers, recruiters, or job placement agencies. These scams often promise high-paying jobs with urgent hiring, little qualifications, or the opportunity to work from home — and can sometimes be a front to recruit job seekers to assist with criminal activity. Scams can occur through various forms of communication including text messages, phone calls, and postings on online job sites. According to the Federal Trade Commission (FTC), job and fake employment agency scams are one of the top forms of fraud. Losses from these scams have nearly tripled from 2020 to 2024, with consumers losing $501 million in 2024. 

“As job recruiting scams become more popular, I urge Californians to exercise caution and be wary of offers that sound too good to be true,” said Attorney General Bonta. “Remember if a stranger offers you a job you didn’t apply for, it’s most likely a scam."

Learn the Warning Signs

There are many potential signs of a job scam. Be wary if the job posting or email exhibits any of these signs:

• Asks for money.
• Asks for you to make purchases on their behalf — such as gift cards.
• Asks you to share your credit card number or bank details.
• Asks you to receive or send money or packages for people you don’t know or haven’t met in person.
• Promises easy money – especially if it involves sending or receiving money or packages.
• Asks you to open a bank account or cryptocurrency account at someone else’s direction.
• Claims to offer a “secret” list of government jobs or a chance to get on an inside track for government employment for a fee. Government job listings are always free —find them at jobs.ca.gov, usajobs.gov, or about.usps.com/careers.
• Lists a company without an established physical office. 
• Gives a short timeline or puts pressure on you to urgently respond.  

Spot the Scam: What are Money Mules?

Job recruitment scams can also be used to recruit unsuspecting job-seekers, sometimes called money mules, to assist with criminal activity. If someone you don’t know sends you money and asks you to forward or transfer the money, you could be fueling fraud. Transferring money on behalf of others not only furthers criminal activity, but it could also lead to consequences for consumers, like losing money or serving jail time. 

Protect Yourself from Job Scams

If you receive a possible scam message: 

• DO NOT CLICK ON THE LINK. If you think a text or message could be legitimate, contact the company using a website or phone number you know is real — not the information in the text.
• Do some research. Search online for the name of the company and words like “review,” “scam,” or “complaint.” If you can’t find the company online, steer clear.
• File a complaint. File a complaint with the FBI, the Federal Trade Commission, and our office. Be sure to include the phone number from where the text originated, and the website listed within the text.
• Delete any scam texts or messages received. 

Continues fight against annoying and harmful robocalls and robotexts   

OAKLAND — California Attorney General Rob Bonta today joined a bipartisan coalition of 51 attorneys general in sending warning letters to nine companies responsible for transmitting substantial robocall traffic, including high-volume robocall campaigns concerning government and financial imposters, credit card interest rate reductions, Medicare scams, political impersonations, cable discount scams, and utility disconnect scams, among others.

“I don’t have to tell Californians that robocalls are annoying and disruptive — but it is important to also remember that many times these calls are illegal and are used to scam unsuspecting people out of their hard-earned money,” said Attorney General Bonta. “Today, my fellow attorneys general and I sent warning letters to companies responsible for facilitating robocalls concerning Medicare, cable discount, and utility scams, among other calls. I am proud to join in this national, bipartisan effort to protect consumers from unwanted robocalls and the risk of financial harm.” 

In the warning letters, Attorney General Bonta and the attorneys general on the nationwide Anti-Robocall Multistate Litigation Task Force (Task Force) warn companies that they must stop transmitting unlawful call traffic immediately, as they violate state and federal laws. If these providers continue to transmit robocalls, the Task Force may pursue further legal actions against these companies and their owners. In the warning letters, the Task Force also informs the providers that it has shared the findings of its investigations with the Federal Communications Commission’s (FCC) Enforcement Bureau.

Warning letters were sent to: 

• All Access Telecom
• Lingo Telecom 
• NGL Communications
• Range 
• RSCom Ltd 
• Telcast Network 
• Telcentris (known as Voxox) 
• ThinQ Technologies (known as Commio)
• Global Net Holdings 

The Anti-Robocall Multistate Litigation Task Force of 51 bipartisan attorneys general investigates and takes legal action against those responsible for routing significant volumes of illegal robocall traffic into and across the United States.

Attorney General Bonta is committed to enforcing consumer protections in the state of California and speaking out for consumer protections nationwide, including working to put a stop to illegal robocalls. In March, Attorney General Bonta submitted an amicus brief in support of a FCC rule which would limit unwanted robocalls and robotexts by closing a loophole that bad-acting lead generators try to use to trick a consumer into “consenting” to calls from potentially thousands of companies.

In 2024, Attorney General Bonta: 

• Sent warning letters to four telecom companies for transmitting suspected illegal robocall traffic on their networks — including robocalls that impersonated government officials or involved scams.
• Submitted a comment letter to the FCC in support of its proposed rules to protect consumers by increasing the effectiveness of the FCC’s Robocall Mitigation Database.
• Sent a warning letter to a telecom company responsible for transmitting suspected illegal robocall traffic, including robocalls that impersonated government officials. 
• Sent a warning letter to a company that allegedly sent New Hampshire residents scam election robocalls during the New Hampshire primary election. 
• Filed a comment letter to the FCC related to the potential impact of emerging artificial intelligence (AI) technology on efforts to protect consumers from illegal robocalls or robotexts. 

In May 2023, Attorney General Bonta, as part of a bipartisan coalition of 49 attorneys general, announced a lawsuit against Avid Telecom for allegedly initiating and facilitating billions of unlawful robocalls that included Social Security Administration scams, Medicare scams, and employment scams. 

Copies of the letters can be found here.

Why would we help the big banks at the expense of working people? 

OAKLAND — California Attorney General Rob Bonta today joined 23 attorneys general in sending a letter to the U.S. House of Representatives urging policymakers to reject an effort to overturn a Consumer Financial Protection Bureau (CFPB) rule that would protect American consumers from predatory overdraft fees. If allowed to take effect, this rule will limit overdraft fees to $5 and will save Americans struggling with high prices billions of dollars each year by preventing the largest banks from exploiting consumers in order to rake in profits. Last month, Attorney General Bonta issued a statement after the Senate voted to overturn this rule. 

“High overdraft fees serve no purpose other than to help the wealthy get wealthier, while American families who are already struggling get poorer. Banks aren’t shy about how these fees pad their wallets: a big bank CEO named his yacht Overdraft,” said Attorney General Bonta. “President Trump has promised to make life for Americans affordable — allowing expensive overdraft fees would do the complete and total opposite. Americans are counting on their elected leaders to protect them. My fellow attorneys general and I urge the House, the last line of defense, to protect its constituents’ wallets by voting “no” on the Resolution and preserving the CFPB’s overdraft rule.” 

The largest U.S. banks generate billions of dollars in profits by charging burdensome fees whenever customers overdraft their accounts. In 2023, banks generated $5.8 billion in revenue from overdraft fees. These fees average around $35 for each overdraft — and are applied even where the overdraft is minimal. For example, many consumers have reported paying overdraft charges of over $30 after purchasing a $5 cup of coffee. Overdraft fees are effectively extremely high-interest loans. Most overdrafts are less than $26 and are repaid within three days. That means overdraft protection with a typical $35 fee amounts to a loan with a 16,000% APR. 

Banks can manipulate the timing of deposits and withdrawals to maximize fees, charging customers even when they have enough money for an approved transaction. By creating significant barriers to maintaining a positive account balance, overdraft fees can contribute to involuntary account closures, thereby driving consumers out of the banking system altogether and damaging their credit. 

In submitting today’s letter, Attorney General Bonta joins the attorneys general of New York, Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Washington, Wisconsin, and the District of Columbia. 

Attorney General Bonta has been an outspoken advocate of the CFPB and its essential work protecting for American consumers and their financial future. 

• In February, Attorney General Bonta filed amicus briefs (here and here) in lawsuits challenging the Trump Administration’s efforts to dismantle the CFPB, arguing that the shuttering of the agency would cause catastrophic and irreparable harm to consumers nationwide.
• In April 2024, Attorney General Bonta 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.
• In February 2024, Attorney General Bonta warned smaller banks and credit unions that overdraft fees disproportionally penalize lower-income consumers and consumers of color and may violate consumer protection laws.

A copy of the letter can be found here. 

HomeOptions must terminate all liens and contracts in California and pay over $570,000 in penalties and restitution to homeowners 

OAKLAND — California Attorney General Rob Bonta today announced reaching a settlement with HomeOptions, a realty company based in Oakland that engaged in a predatory real estate scheme impacting over 500 California homeowners, and its Chief Executive Officer. In partnership with Napa County District Attorney Allison Haley and Santa Barbara County District Attorney John T. Savrnoch, Attorney General Bonta launched an investigation into HomeOptions that found the company lured financially vulnerable homeowners with an immediate payment of a couple hundred to a couple thousand dollars in exchange for the exclusive right to be the homeowner’s real estate listing agent for the next 20 years, entered into unlawful contracts with those homeowners, deceptively recorded liens against the homeowners’ homes, and forced homeowners to pay tens of thousands of dollars in illegal fees to remove those liens so that they could transfer title or obtain home loans. HomeOptions misrepresented the nature of its agreements, included unlawful breach and early termination penalty terms in its contracts, and violated California’s Real Estate Law, state and federal telemarketing laws, and federal lending laws. As part of the settlement, HomeOptions has agreed to terminate all liens and contracts in California, pay full restitution to victims, and pay civil penalties. 

“HomeOptions’ business practices can be summed up in one word: predatory. This settlement holds the company accountable and provides immediate relief to California homeowners,” said Attorney General Bonta. “Homeowners will regain full control over their homes, without having to worry about a HomeOptions lien ever again. And homeowners who have already paid early termination penalties to HomeOptions will get all of their money returned. Let there be no doubt that, in California, we will enforce the law against unscrupulous businesses that exploit vulnerable consumers.”

“Napa will not stand mute to the predation of those who victimize our citizenry,” said Napa County District Attorney Allison Haley. “I am gratified that by our action, all the exclusive listing agreements with California consumers are rendered void and unenforceable.”

“Homeowners are entitled to be safe in their homes and not fall prey to scams intended to extract their home equity,” said Santa Barbara County District Attorney John Savrnoch. “This settlement rightly provides full restitution to all victims and prevents HomeOptions and its CEO from engaging in these practices again.” 

The settlement announced today requires HomeOptions to: 

• Terminate all liens that it recorded on California homeowners’ homes. Because these liens clouded title, homeowners often could not transfer title or obtain home loans without paying HomeOptions to terminate those liens. By requiring termination of all liens, the settlement will likely save impacted homeowners tens of thousands of dollars each.
• Void all contracts that it entered into with California homeowners. These contracts required homeowners to pay steep fees if they did not use HomeOptions real estate agents. By voiding these contracts and requiring HomeOptions to stop any enforcement or collection efforts on these contracts, the settlement allows homeowners to list their homes with any real estate agent of their choosing and releases them from all obligations and payments to HomeOptions.
• Pay full restitution, totaling over $400,000, to homeowners who previously paid HomeOptions illegal fees, including to remove their liens.
• Pay approximately $170,000 in civil penalties.

California has passed legislation to prohibit predatory schemes like the one HomeOptions engaged in. On October 8, 2023, Governor Gavin Newsom signed into law AB 1345, which was authored by Assemblymember Gregg Hart (D-Santa Barbara), sponsored by Attorney General Bonta, and went into effect on January 1, 2024. AB 1345 imposes a two-year limit on residential exclusive listing agreements and prohibits the filing of those agreements with a county recorder. HomeOptions ceased entering into California homeowner agreements in 2024. 

A copy of the complaint can be found here. A copy of the stipulated judgment can be found here.

OAKLAND — California Attorney General Rob Bonta today issued the following statement in response to a court granting a preliminary injunction in National Treasury Employees Union v. Vought, a lawsuit challenging the Trump Administration’s efforts to dismantle the Consumer Financial Protection Bureau (CFPB). The decision prevents the Trump Administration from further demolishing the agency vital to federal consumer protections while litigation in this case proceeds. Last month, Attorney General Bonta joined a coalition of attorneys general in submitting an amicus brief arguing that the shuttering of the CFPB would cause catastrophic harm to consumer protections nationwide and leave state agencies with the sole responsibility to protect consumers from conduct regulated by the CFPB. 

“The CFPB is the top cop protecting American families who want to buy a home and people who want to borrow money to buy a car or attend college. The CFPB is for everyone. This agency fights for hardworking people who don’t want to get cheated by big banks and predatory lenders and protects a level playing field where businesses can succeed on merit rather than by cutting corners and cheating their customers,” said Attorney General Bonta. “The court order today prevents the Trump Administration from continuing its illegal attempt to destroy the agency looking out for consumers across the country. I celebrate this early win and will continue to use the power of my office to advocate for essential consumer protections nationwide.”

OAKLAND — California Attorney General Rob Bonta today issued a statement after Congress overturned a Consumer Financial Protection Bureau (CFPB) rule that would have limited overdraft fees to $5. Currently, banks usually charge $35 for an overdraft. The rule was expected to have saved Americans billions of dollars each year. 

“Congress just voted to increase bank fees, overturning a CFPB rule that would have saved hardworking American families billons a year — this directly harms consumers already struggling with affordability and the ripples of inflation,” said Attorney General Bonta. “Let me be clear: by allowing big banks to charge high overdraft fees, Congress is paving the way for wealthy banks to get wealthier, and for working class people to be squeezed even further.”

Overdraft fees can lead to substantial financial losses for families and turn setbacks into crises. 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. Meanwhile, financial institutions nationwide generated over $7.7 billion in revenue from overdraft fees and non-sufficient funds fees in 2022. 

Attorney General Bonta has been a steadfast advocate for consumer protections, including limiting overdraft fees. 

• Last month, Attorney General Bonta filed amicus briefs (here and here) in lawsuits challenging the Trump Administration’s efforts to dismantle the CFPB, arguing that the shuttering of the agency would cause catastrophic and irreparable harm to consumers nationwide.
• In April 2024, Attorney General Bonta 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.
• In February 2024, Attorney General Bonta warned smaller banks and credit unions that overdraft fees disproportionally penalize lower-income consumers and consumers of color, and may violate consumer protection laws.