Consumer Protection

SAN FRANCISCO — California Attorney General Rob Bonta today delivered remarks on California Department of Justice’s preparations to protect California’s values, people, and natural resources ahead of a second Trump Administration.

Attorney General Bonta's Remarks as Prepared for Delivery:

As the reality of a second Trump Administration takes hold, I know there is a great deal of fear, sadness, anxiety, and panic. 

I understand. 

I’m here today to reassure you that in California, progress will prevail. 

No matter who is in the White House, no matter who holds control of Congress, in California we will keep moving forward. 

In California, we will choose calm over chaos. 

Fact over fiction.

Belonging over blame.

Unity over division. 

“Us and we” over “I and me.” 

It’s why we’re the 5th largest economy in the world. Not in spite of our commitment to workers, consumers, and the environment, because of it. 

Because we’re the largest and most diverse state in the nation.

Because we believe in the power of inclusivity.

Because we believe in truth over lies. Hope over hate. Light over dark.

Because  we believe in looking forward.

It’s who we are in the Golden State. It’s in our DNA. Nothing and no one can change that. 

As Attorney General, I’ll continue to use the full force of the law and authority of this office to address injustice. 

To stand up for all people, especially those who have long been overlooked and undervalued.

To safeguard reproductive rights. 

And advocate for more housing — especially more affordable housing for lower and middle-income families just trying to get by.

I’ll continue to take on greedy corporate giants and fight for more affordable gas, groceries, and everything in between.  

I’ll continue to defend our world-renowned natural resources and protect them for generations to come. 

Continue to fight for clean water to drink and clean air to breathe.

Continue to crack down on illicit guns on our streets and get fentanyl out of our neighborhoods. 

Continue to fight for workers.

I’ll continue to protect, defend, and serve every single Californian. No matter your politics. 

I’m here to ensure every person — no matter how they look, how much money they make, where they’re from, who they love, how they identify, or how they pray — can pursue their version of the California Dream. 

A fair wage and good benefits.  

A safe and affordable place to live.  

Affordable and accessible health care. 

Good schools to send our kids to. 

Safe neighborhoods to raise our families. 

That’s my promise to you, no matter who is in the White House.  

We’ve been here before.

We lived through Trump 1.0. 

We know what he’s capable of. 

We know what plans he has in store. 

The silver lining is just that: we know. 

We know to take Trump at his word when he says he’ll roll back environmental protections, go after our immigrant and LGBTQ+ communities, attack our civil rights, and restrict access to essential reproductive care.

Which means, we won’t be flat-footed come January.

You can be sure that as California Attorney General, if Trump attacks your rights: I’ll be there. 

If Trump comes after your freedoms: I’ll be there. 

If Trump jeopardizes your safety and well-being: I’ll be there.

California DOJ did it before and we’ll do it again.  

During the last Trump Administration, California DOJ fought to stop illegal rollbacks and proposals that would’ve harmed the well-being, health, safety, and civil rights of our people and of people across the country. 

That would have caused irrevocable damage to our environment.

No matter who is in charge of the federal government…

No matter what the incoming Administration has in store… California will remain the steadfast beacon of progress it has long been.  

A constant, unwavering, immoveable force to be reckoned with.  

We’ll continue to be a check on overreach and push back on abuse of power. 

Be the antidote to dangerous, extremist, hateful vitriol.

Be the blueprint of progress for the nation to look to.

Remember: in moments of chaos in D.C., you can always look to California for calm resolve. 

California leaders across the state are ready to stand arm-in-arm. 

Governor Newsom and every single Constitutional Officer;  

Senator Padilla and Senator-elect Schiff;  

Democratic members of Congress; 

Pro Tem McGuire, Speaker Rivas, and the California Legislature; 

Mayors, supervisors, and city councilmembers from San Francisco to San Diego are ready to fight for our California values. 

For our people. For our environment.

For progress and justice.

And as necessary, we’re ready to take on the challenges of a second Trump Administration — together.

While a great deal of change is on the horizon…

California’s path to progress remains full steam ahead.

It may not always be linear. Progress so rarely is. 

It zigs and zags. Takes frustrating detours. Inches forward and backward and forward again. 

The detours and setbacks don’t define our progress.

Our commitment to forward momentum defines our progress. Defines us. 

It’s what we do next that will define us. 

If you’re feeling despondent today, remember that you’re not alone. 

In California, we’re not looking back. We’re not moving back. 

We’re California! We’ll meet any challenges head on and rise to the occasion.

As is so often said, as California goes, so goes the nation.

In the days and months and years to come, all eyes will look west. 

In California, they’ll see: we’re still moving forward.

Thank you.

To view a recording of the press conference, please visit here. 

OAKLAND — California Attorney General Rob Bonta today joined 16 attorneys general in supporting a federal prohibition on price gouging. While 40 states across the country, including California, ban price gouging, there is no federal price gouging prohibition. Because so many product supply chains are nationwide, states face heightened challenges when protecting consumers from price gouging. A complementary federal price gouging prohibition would provide critical partnership to state enforcement, protect both consumers and small businesses, and strengthen existing state laws.

“During and after a crisis, it is unfair — and harmful to our economy —for companies to reap higher profits for selling goods and services that families need to survive. That is why California’s price gouging law protects Californians during and after wildfires, severe weather storms, and other emergencies,” said Attorney General Bonta. “A federal price gouging prohibition that complements state law would build on successful partnerships between states and the federal government to protect consumers by making it easier to enforce price gouging prohibitions nationally, up the supply chain. This would benefit California consumers and small businesses who currently bear the brunt of their suppliers’ price setting.”

Price gouging refers to sellers who take unfair advantage of consumers during an emergency or disaster by greatly increasing prices for essential consumer goods and services. Price gouging prohibitions are not price caps; prohibitions place temporary limits on a business’s ability to raise its profits on essential goods in a crisis. Price gouging prohibitions allow businesses to raise prices to cover costs, but those price increases should not result in an increase in their profits.

In the letter, the attorneys general explain that the current gap in federal regulations allows larger companies outside of state control to raise prices and pass down costs to smaller businesses. Without a federal prohibition, consumer-facing retailers — often small businesses — bear the burden of reputational and legal consequences of crisis-induced higher prices, even when the most significant price gouging activity may be happening up the supply chain. A federal price gouging prohibition that complemented state prohibitions would allow federal enforcement agencies, such as the Federal Trade Commission, to identify and restrain irrational price increases throughout the entire supply chain.

In the letter, the attorneys general argue that price gouging laws have key benefits that strengthen the economy. Price gouging laws:

• Prevent inefficient pricing overreactions in the heat of a crisis. Setting prices too high may damage a business’s reputation and harm long-term profitability.
• Encourage the production of essential supplies. Increasing production and selling more products, instead of selling the same amount at a higher price, allows businesses to increase their gross profits but not their profit margins and helps ensure people have enough essential supplies at reasonable costs.
• Prevent hoarding. Encourages businesses to directly limit inefficient over-consumption.
• Keep prices competitive. If consumers have no choice but to buy an essential product from one particular seller, price gouging prohibitions can restrain high prices for products where there is very little competition. 

In sending today’s letter, Attorney General Bonta joined the attorneys general of New York, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Oregon, New Jersey, New Mexico, Pennsylvania, Vermont, and the District of Columbia. 

In California, 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.

For additional information, please see DOJ's FAQs on price gouging here.

A copy of the letter can be found here.

Continues work to protect consumers from annoying — and deceitful — robocalls

OAKLAND — California Attorney General Rob Bonta today joined the Federal Communications Commission (FCC) and a coalition of 51 bipartisan attorneys general in issuing a warning letter to a telecom company responsible for transmitting suspected illegal robocall traffic, including robocalls that impersonated government officials and imitated a hotline used by the Illinois Attorney General’s office. 

In the warning letter, Attorney General Bonta and the attorneys general on the nationwide Anti-Robocall Multistate Litigation Task Force warn iDentidad Advertising Development LLC dba iDentidad Telecom (iDentidad) that they need to cease transmitting any unlawful call traffic immediately. Originating and transmitting illegal robocalls violates the Telephone Consumer Protection Act, the Telemarketing Sales Rule, the Truth in Caller ID Act, and other state consumer protection laws.

“Consumers deserve to know that the voice on the other end of the line is precisely who they claim to be. Robocalls aren’t just frustrating, they can result in serious financial harm and the impersonation of government officials,” said Attorney General Bonta. “I am proud to join in this national, bipartisan effort to protect consumers from unwanted robocalls and warn companies to stop illegal conduct immediately.”

The Task Force notes that iDentidad is a gateway provider responsible for funneling high-volume robocall campaigns from outside the country into the U.S., including a large number of illegal or suspicious calls involving IRS/Social Security Administration government imposters, utility scams, and financial scams. The letter warns iDentidad that if they don’t stop routing suspicious or illegal robocall traffic, the attorneys general may take legal action including seeking damages, civil penalties, and injunctions. In addition to the warning letter, the FCC also sent a cease-and-desist to iDentidad today, demanding that it immediately stop supporting illegal robocall traffic on its network.

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 February, Attorney General Bonta joined a coalition of 51 bipartisan attorneys general in issuing a warning letter to a company that allegedly sent New Hampshire residents scam election robocalls during the New Hampshire primary election. 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. 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. 

A copy of the letter is available here.

 Staying safe online is easier than you think

OAKLAND – In recognition of Cybersecurity Awareness Month, which is celebrated annually every October, California Attorney General Rob Bonta today provided tips for consumers and businesses to defend themselves against cybersecurity threats. 

“During Cybersecurity Awareness Month and beyond, I urge Californians and businesses to take online threats seriously,” said Attorney General Bonta. “Don’t wait for a cyberattack or data breach to prioritize your protection – the time to act is now. Whether you’re an individual or a business, digital security is for everyone. In a world that increasingly operates online, keeping data safe is a collective responsibility.” 

The theme of Cybersecurity Awareness Month 2024 is “Secure Our World,” to remind us that there are simple ways to protect yourself, your family, and your workplace from online threats.

Below are four simple and effective ways you can stay safe online at home or on the job:

Use Strong Passwords

Fight the urge to reuse passwords. Strong passwords are long, random, and unique, and include all four character types (uppercase, lowercase, numbers, and symbols). Password managers are a powerful tool to help you create strong passwords for each of your accounts.

Turn On Multifactor Authentication (MFA)

Turning on MFA provides you with extra security by confirming your identity when logging in to your accounts. MFA significantly protects you from being hacked. Enable MFA on all your online accounts that offer it, especially email, social media, and financial accounts.

Think Before You Click!

Be cautious of unsolicited messages asking for personal information and avoid sharing sensitive information or credentials with unknown sources. Phishing is the fraudulent practice where bad actors send emails or other messages pretending to be from reputable sources in order to obtain private and personal information from individuals. Report phishing attempts and remember to delete the phishing message.

Promptly Update Software

Avoid clicking “Remind me later” when you see an update alert. Ensuring your software is up to date is the best way to make sure you have the latest security updates on your devices. Regularly check for updates if automatic updates are unavailable.

Helpful Resources

Individuals can find data privacy resources and information on our privacy and data security web page. Additional cybersecurity resources can be found on the Cybersecurity & Infrastructure Security Agency’s (CISA) cybersecurity resources website, as well as on the National Institute of Standards and Technology’s cybersecurity website.

Businesses can find useful cybersecurity resources on CISA’s resources for business web page.

California law requires a business or state agency to notify any California resident whose unencrypted personal information was acquired, or reasonably believed to have been acquired, during a data security breach. You can find more information regarding this requirement on our data security breach reporting web page.

For more information about Cybersecurity Awareness Month, visit here.

OAKLAND — California Attorney General Rob Bonta, along with a bipartisan coalition of 33 attorneys general, successfully blocked an attempt by Meta to dismiss the coalition’s lawsuit against the company for its part in harming children’s mental health and for allowing young children on its platforms in violation of federal law. In October 2023, Attorney General Bonta co-led a bipartisan coalition of 33 attorneys general in filing a federal lawsuit against Meta. Filed in the U.S. District Court for the Northern District of California, the lawsuit alleges that Meta, among other things, deceived the public regarding its design and deployment of harmful features on Instagram and Facebook that addict children and teens to their mental and physical detriment.

“Meta needs to be held accountable for the very real harm it has inflicted on children here in California and across the country,” said Attorney General Bonta. “Along with legislation providing for market-wide changes, this litigation will help determine how social media companies can be held accountable and how these companies can treat our children for decades to come. I have an immense amount of hope for the future. As the home to the greatest innovators in the world and a robust technology sector, California has a particular opportunity and obligation to be a catalyst for change. Meta can and must do better. Our children deserve their childhoods back.”

ABX2-1 protects consumers from avoidable gas price spikes that pad big oil profits

OAKLAND — California Attorney General Rob Bonta issued a statement today after ABX2-1 was signed into law by Governor Gavin Newsom. Authored by Assemblymember Gregg Hart (D-Santa Barbara), Assemblymember Cecilia Aguiar-Curry (D-Winters), Senator Nancy Skinner (D-Berkeley) and co-sponsored by Attorney General Bonta and Governor Gavin Newsom, ABX2-1 would stabilize California's oil market by ensuring refineries have adequate fuel reserves to avoid supply shortages that hike gas prices and harm consumers.

“Californians have been paying too much for gas, while year after year, oil companies report record profits at their expense. Let’s be clear – the price spikes consumers see at the pump are profit spikes for big oil,” said Attorney General Rob Bonta. “Enough is enough. ABX2-1 will save Californians billions of dollars and reduce opportunities for Big Oil to manipulate the market.”

“Price spikes have cost Californians billions of dollars over the years, and we’re not waiting around for the industry to do the right thing — we’re taking action to prevent these price spikes and save consumers money at the pump,” said Governor Gavin Newsom. “Now, the state has the tools to make sure they backfill supplies and plan ahead for maintenance so there aren’t shortages that drive up prices. I’m grateful to our partners in the Senate and Assembly for acting quickly to push this forward and help deliver relief for Californians.”

“This landmark legislation is a win for consumers, and a win for accountability in the state’s gasoline market,” said Assemblymember Gregg Hart, D- Santa Barbara. “ABX2- 1 will save working California families billions at the gas pump. This common sense solution has received broad public support because consumers know that when gas prices spike in California, the oil industry unfairly profits.”

“ABX2-1 was the subject of an extensive amount of scrutiny, testimony and participation by Members of the Legislature in over 18 hours of hearings. I am proud of the work done by our Assembly Policy Chair, Assemblymember Petrie-Norris, and my colleagues and Joint Authors Assemblymember Hart and Senator Skinner on this critical issue,” said Assembly Majority Leader Cecilia Aguiar Curry, D-Winters. “This bill clearly states that no regulations will move forward unless there is a tangible benefit to California gas consumers, and that the safety of our refinery workers and the public is paramount in any action taken by the State. Our work is not done when the Governor signs ABX2-1. We owe it to all Californians to remain actively engaged in the regulatory process to assure those goals and values are met.”

California's oil market is uniquely vulnerable to manipulation from oil companies. California’s isolated fuel market makes it so supply disruptions including planned maintenance outages can dramatically impact prices. Because nearly all in-state supply comes from a handful of refineries, a single refinery outage could drastically reduce refining capacity. This volatility places an undue burden on California consumers, especially consumers with fixed or limited incomes.

To stabilize California's oil supply and prevent price spikes, ABX2-1 requires refineries to maintain adequate reserves and properly plan for refinery shutdowns. ABX2-1 would authorize the California Energy Commission to adopt regulations requiring refiners to maintain minimum inventory levels and establish effective penalties to ensure the law is enforceable and Big Oil follows the rules. The Commission can only adopt these regulations if it determines that they will lead to lower average retail prices, increase the fuel supply, and reduce price instability for consumers.

Attorney General Bonta is steadfast in his commitment to protect consumers at the pump and hold bad actors accountable. This month, Attorney General Bonta urged California residents who purchased gas in Southern California in 2015 to submit a claim for a payment under the state’s $50 million settlement with gas trading firms for tampering with and manipulating prices for California gasoline. Last year, Attorney General Bonta co-sponsored SBX1-2, which increases transparency in the oil industry to help identify causes of price irregularities. Authored by Senator Nancy Skinner (D-Berkeley), co-sponsored by Governor Newsom, and approved by a supermajority in both the Senate and Assembly, SBX1-2 created a dedicated independent watchdog to root out market manipulation and price gouging by oil companies. The law went into effect on June 26, 2023.  

Platform designed to promote excessive, compulsive, and addictive use

SAN FRANCISCO — California Attorney General Rob Bonta and New York Attorney General Letitia James today co-led a bipartisan coalition of 14 attorneys general in filing separate enforcement actions against TikTok for violations of state consumer protection laws. Filed in Santa Clara County Superior Court, Attorney General Bonta’s action alleges that TikTok exploits and harms young users and deceives the public about the social media platform’s dangers. The action seeks significant penalties, as well as injunctive and monetary relief, to address TikTok’s misconduct.

“Our investigation has revealed that TikTok cultivates social media addiction to boost corporate profits. TikTok intentionally targets children because they know kids do not yet have the defenses or capacity to create healthy boundaries around addictive content,” said Attorney General Rob Bonta. “When we look at the youth mental health crisis and the revenue machine TikTok has created, fueled by the time and attention of our young people, it’s devastatingly obvious: Our children and teens never stood a chance against these social media behemoths. TikTok must be held accountable for the harms it created in taking away the time — and childhoods — of American children.” 

“Young people are struggling with their mental health because of addictive social media platforms like TikTok,” said New York Attorney General Letitia James. “TikTok claims that their platform is safe for young people, but that is far from true. In New York and across the country, young people have died or gotten injured doing dangerous TikTok challenges and many more are feeling more sad, anxious, and depressed because of TikTok’s addictive features. Today, we are suing TikTok to protect young people and help combat the nationwide youth mental health crisis. Kids and families across the country are desperate for help to address this crisis, and we are doing everything in our power to protect them.”

Use of TikTok is pervasive among young people in the United States. In 2023, 63% of all Americans aged 13 to 17 who responded to a Pew Research survey reported using TikTok, and most teenagers in the U.S. were using TikTok daily; 17% of American teens said that they were on TikTok “almost constantly.”

In today’s lawsuit, Attorney General Bonta alleges TikTok violated California’s consumer protection statutes, the Unfair Competition Law (UCL), and the False Advertising Law (FAL).

According to the complaint, TikTok’s misconduct arises from its underlying business model that focuses on maximizing young users’ time on the TikTok platform so as to enable the company to boost revenue from selling targeted advertising space. TikTok’s misconduct includes: 

Deploying a content-recommendation system designed to be addictive in order to maximize the time young users spend on the platform. TikTok’s algorithmic features are designed to keep minors on the platform as long as possible and as often as possible, despite the dangers of compulsive use.

Using manipulative features to addict young users and maximize their time on its platform. These features exploit children's psychological vulnerabilities and are deployed to keep kids and teens on the platform for longer. 

BEAUTY FILTERS

Beauty filters and effects are deeply harmful to young users; they foster unrealistic beauty standards, harm self-esteem, and can induce negative body image issues and related physical and mental disorders. TikTok knows these filters and effects significantly increase platform use, particularly among young users, and retains these features despite their harms.

AUTOPLAY

To manipulate users into compulsively spending more time on the platform, TikTok does not allow them to disable Autoplay. TikTok uses Autoplay to continuously play new and temporary posts; this exploits young users’ novelty-seeking minds and eliminates their autonomy to choose to stop.

ENDLESS/INFINITE SCROLL

Endless scrolling compels young users to spend more time on the platform by making it difficult to disengage. It strips away a natural stopping point or opportunity to turn to a new activity and distorts users’ perception of time.

TIKTOK STORIES AND TIKTOK LIVE

Content on these features is only available temporarily — users must tune in immediately or lose the opportunity to interact. These time-sensitive features are designed to encourage young users to compulsively return to the platform by exploiting their uniquely sensitive fear of missing out. 

PUSH NOTIFICATIONS

Push notifications unfairly entice young users by overloading and overwhelming them to return to the platform. Some pushes are designed to keep young users from quitting the platform altogether, and others encourage young users to open the application. TikTok has even used fake notifications to manipulate users into opening its platform. 

LIKES AND COMMENTS

At key development states it can be overwhelmingly important for children and teens to be accepted by their peers. TikTok’s design and display of highlighting “likes” as a form of social validation has an especially powerful effect on young users and can neurologically alter teenagers’ perception of online posts, in addition to driving compulsive use.

Engaging in a scheme that deceptively markets the platform and platform features as promoting young users’ safety and well-being. TikTok employs a coordinated array of features, tools, content moderation efforts, community guidelines, and public assurances intended to promote a public narrative that the platform is appropriate and safe for young users and that TikTok prioritizes user safety. In truth, such features and efforts do not work as advertised, the harmful effects of the platform are far greater than acknowledged, and TikTok does not prioritize safety over profit.

Exploiting children’s data without parental notice or consent. Despite knowing certain users are under 13 years old and despite the platform being directed toward children, TikTok has collected and used personal information from children's accounts without parental consent or notice. Doing so is both unfair and fails to satisfy TikTok’s obligations under federal law. 

Attorneys general from the following states join Attorney General Bonta today in filing separate enforcement actions against TikTok to hold it accountable for its role in the children's mental health crisis: New York, Illinois, Kentucky, Louisiana, Massachusetts, Mississippi, North Carolina, New Jersey, Oregon, South Carolina, Vermont, Washington, and the District of Columbia. As of today, 23 attorneys general have filed actions against TikTok for its conduct toward youth, including existing actions filed by the attorneys general of Utah, Nevada, Indiana, New Hampshire, Nebraska, Arkansas, Iowa, Kansas, and Texas. 

Attorney General Bonta is a steadfast leader in protecting children against the mental health harms of using social media. In March 2022, Attorney General Bonta announced a nationwide investigation into TikTok, and in March 2023, he filed an amicus brief demanding TikTok comply with state investigations. In October 2023, Attorney General Bonta co-led a bipartisan coalition of 33 attorneys general in filing a federal lawsuit against Meta alleging the company designed and deployed harmful features that addict children and teens to their mental and physical detriment, and in November 2023, he announced the public release of a largely unredacted copy of the federal complaint. Last month, Attorney General Bonta issued a statement after Senate Bill 976 (SB 976) was signed into law by Governor Gavin Newsom. SB 976 provides important new protections for young people in California by resetting the defaults on social media platforms to disfavor addictive algorithmic feeds, notifications, and other addictive design features that lead children and teens to spend hours and hours on their platforms. 

A copy of the redacted complaint can be found here. 

Eligible drivers can submit claims at Calgaslitigation.com

OAKLAND — California Attorney General Bonta today urged California residents who purchased gas in Southern California between February 20, 2015 and November 10, 2015 to submit a claim for a payment under the state’s settlement with gas trading firms for tampering with and manipulating prices for California gasoline. Eligible Californians may submit a claim online at www.CalGasLitigation.com.

“Market manipulation and price gouging are illegal and unacceptable, particularly during times of crisis when people are most vulnerable,” said Attorney General Bonta. “I am proud to deliver money back to Californians who were victims of gas price manipulation. As the People’s Attorney, I am committed to combating corporate greed and ensuring justice for the people of California.”

In July, Attorney General Bonta announced a $50 million settlement with gas trading firms, resolving allegations that Vitol, Inc. and SK Energy Americas, Inc., along with its parent company SK Trading International, secretly worked together to tamper with and manipulate spot market prices for California gasoline. If you purchased gasoline in Los Angeles, San Diego, Orange, Riverside, San Bernardino, Kern, Ventura, Santa Barbara, San Luis Obispo, and/or Imperial counties in California between February 20 and November 10, 2015, you may be eligible for a payment.

The Attorney General's settlement is in addition to a settlement of a private class action lawsuit filed in federal court. 

To submit a claim, learn full details about your rights and options, and access frequently asked questions, visit www.CalGasLitigation.com.

OAKLAND – California Attorney General Rob Bonta today issued a consumer alert following Governor Newsom’s declaration of a state of emergency in Lake County to support communities recovering from the Boyles Fire. The Boyles Fire, now contained, spread through the City of Clearlake, threatening structures, homes, and critical infrastructure. The fire ultimately damaged or destroyed over 30 structures.

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 see here.

“As the community of Clearlake recovers from the Boyles Fire, I want to remind folks that 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, please 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.

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.

OAKLAND — California Attorney General Rob Bonta today issued a statement in response to Senate Bill 1061 (SB 1061) being signed into law by Governor Gavin Newsom. Authored by Senator Monique Limón (D- Santa Barbara) and cosponsored by the Attorney General, and many prominent advocacy organizations including the California Nurses Association, Health Access California, CALPIRG, Consumer Federation of California, and the National Consumer Law Center, SB 1061 will protect consumers from having their credit ruined by prohibiting medical debt from being reported on credit reports. Credit reports are meant to gauge an individual’s ability to repay future debt. Medical debt is often unforeseen and not a reliable indicator of financial risk, yet it can unfairly prevent consumers from getting loans, renting an apartment, or getting a job. This kind of debt on a credit report reflects the financial burden of illness, not an inability to manage finances, including payment of other bills, or posing a credit risk. 

"When someone is scared and in pain, the last thing they should think about is whether seeking care will take away their ability to buy a house or land a job. Unfortunately, medical debt appearing on credit reports makes this a common experience for far too many people,” said Attorney General Rob Bonta. “California today chose to put a stop to this unnecessary and outdated practice. SB 1061 supports Californians’ fair access to essential economic opportunities and a brighter future.” 

“I am proud to author legislation to provide relief to Californians suffering from the burden of medical debt,” said Senator Monique Limón. “No Californian should be unable to secure housing, a loan, or even a job because they accessed necessary medical care. California is stepping up to protect consumers impacted by the effects of medical debt." 

Medical debt continues to increase and is a barrier to employment, housing, and the promotion of healthcare access and equity. The Urban Institute reported 7.8% of California consumers with a credit report had a medical debt listed on it, increasing to 8.5% for Black Californians. People with medical debt are more likely to say debt has caused them to be turned down for a rental or a mortgage than people with student loans or credit card debt, increasing their risk of homelessness or being forced to live in substandard housing. Debt can also create barriers for finding employment as employers often use credit reports as a basis for hiring decisions, which in turn, makes it even more difficult to pay off medical debt. Many consumers are also forced to postpone important medical care due to medical debt, which may lead to further illness. In September 2023, the Consumer Financial Protection Bureau (CFPB) announced a rulemaking process to remove medical bills from consumers' credit reports. In August 2024, Attorney General Bonta sent a letter to CFPB in support of the Bureau’s Proposed Rule which would prohibit the reporting of medical debt on credit reports. With the enactment of SB 1061, California now joins seven other states in supporting the CFPB and the Biden Administration by enacting state-level legislation against medical debt credit reporting.