Health Care & Reproductive Rights

Subject to court approval, the settlement requires restructuring of unlawful corporate ownership and protects patients 

OAKLAND — California Attorney General Rob Bonta today announced a settlement with Carbon Health Technologies, Inc., its affiliated medical groups, and its co-founder and former CEO, Eren Bali, (Carbon Health), resolving allegations that the company violated California's prohibition on the corporate practice of medicine, engaged in false advertising, used unlawful consumer contracts, and improperly billed patients and insurance providers. Founded in the Bay Area in 2015, Carbon Health operates over 80 clinics across eight states, including 54 in California. As alleged in the complaint filed alongside the settlement, an investigation by the California Department of Justice (DOJ) found that Carbon Health used a structure in which a corporate entity not licensed to provide medical care effectively owned and controlled all aspects of the medical practice, in violation of California’s prohibition on the corporate practice of medicine. The settlement requires Carbon Health to end this structure and ensure that physicians control medical decisions. It also permanently enjoins Carbon Health from having policies that, as uncovered by the DOJ investigation, subjected patients to billing errors, overcharges, and other improper billing practices. As added accountability for the conduct at issue, the settlement imposes $4.4 million in penalties on Carbon Health and $100,000 on Mr. Bali. 

“In California, medical decisions must be made by licensed healthcare professionals whose duty is to prioritize patient care, not by companies focused on profits,” said Attorney General Bonta. “This settlement holds Carbon Health accountable for violating California's longstanding protections against the corporate practice of medicine and for engaging in unlawful business practices. It also sets a significant precedent by showing that healthcare businesses can be restructured to protect patients, preserve physicians’ independent medical judgment, and comply with California’s laws.” 

Carbon Health used a “friendly professional corporation” model in which Carbon Health Technologies, a management services organization (MSO), controlled the clinics’ business operations through contracts. Those contracts unlawfully gave Carbon Health Technologies the power to replace the physician-owner of the clinics with a physician of its choosing, while preventing the physician-owner from replacing the MSO without risking losing ownership of the medical practice. As a result, the MSO effectively ran these captive clinics, divided physician loyalties, subordinated patient wellbeing to its financial interests, and allowed Mr. Bali and the MSO’s unlicensed officers to direct staffing, advertising, and insurance negotiations. 

DOJ’s investigation also found that Carbon Health misled patients about insurance coverage, including misrepresenting which plans it accepted and sometimes telling patients they were in-network when they were not, leading to unexpected out-of-network bills. Further, the investigation identified billing problems, such as a hidden automatic charging term for credit cards, overcharges, charging patients twice for the same service, and delaying refunds when errors were discovered. 

Under the settlement, Carbon Health has agreed to comprehensive injunctive relief requiring significant changes to its corporate structure and business practices. Among other things, the settlement requires Carbon Health to:

• Revise its corporate structure: Carbon Health must change its organizational structure so that a non-medical management company can no longer control or have ownership interests in physician-owned medical practices. Physicians must have independent control over medical decisions and how the practices operate.
• Stop misleading advertising: Carbon Health must end advertising and communications that falsely or misleadingly represent insurance coverage or whether services are in-network.
• Update patient contracts: The company must revise its consent forms and contracts to remove unclear or unlawful terms that affected how and when patients were billed.
• Fix billing practices: Carbon Health must correct how it bills patients and insurers to reduce errors, prevent overcharges, and ensure patients are not improperly charged.

Carbon Health filed for Chapter 11 bankruptcy restructuring in the U.S. Bankruptcy Court for the Southern District of Texas while the Attorney General’s investigation was ongoing. Carbon Health and the California Attorney General’s Office are now filing the settlement, which is subject to court approval, in the Los Angeles County Superior Court.

The settlement is part of Attorney General Bonta's broader efforts to protect patients from unlawful corporate influence over medical decision-making. In April 2026, Attorney General Bonta filed an amicus brief defending California's prohibition on the corporate practice of medicine, and in May 2026, Attorney General Bonta secured a settlement with Aspen Dental for violations of the corporate practice of dentistry.

OAKLAND — Co-leading a bipartisan coalition of 25 attorneys general, California Attorney General Rob Bonta and the City of New York today welcomed Shopify’s decision to ban the sale of all vaping products, including e-cigarettes, through its e-commerce platform. The decision is a direct response to the coalition’s November 2025 call for stronger safeguards. Headquartered in Ottawa, Canada, Shopify describes itself as “a commerce platform that helps you sell online and in person” and explains that “[e]ntrepreneurs, retailers, and global brands use Shopify to make sales, run stores, and grow their businesses.”

“E-cigarettes have harmed young people across the country,” said Attorney General Bonta. “For too long, online platforms have enabled the sale of these dangerous and highly addictive products. We called on Shopify to act, and we appreciate its cooperation. This change will help significantly reduce the sale of illegal nicotine products. We will continue to hold companies accountable and protect public health.”

E-cigarettes are highly addictive and pose significant health risks, particularly to youth, and are therefore subject to strict regulation. States in the coalition, as well as local governments within the states, have passed laws to mitigate the sale of e-cigarettes. For example, in California, Senate Bill 793 (Hill, 2020) banned flavored tobacco products (subject to certain exceptions) and tobacco product flavor enhancers. Assembly Bill 3218 (Wood, 2024), which went into effect on January 1, 2025, amended the flavor ban by expanding the definition of flavored products, expanding enforcement power, and creating an Unflavored Tobacco List (UTL). The UTL is a list of unflavored tobacco products that are lawful for sale in California. 

At the federal level, every new tobacco product, such as an e-cigarette, must receive an order from the Food and Drug Administration (FDA) authorizing its marketing and sale in the United States. To date, the FDA has authorized 45 specific e-cigarette products, all of which are for adult smokers only. E-cigarettes that have not received approval from the FDA, which constitute essentially all e-cigarettes offered by online sellers, are deemed “adulterated.” Federal law prohibits the receipt or delivery in interstate commerce of any adulterated tobacco product, and delivery or proffered delivery of adulterated tobacco products is accordingly unlawful under United States law.

Joining Attorney General Bonta and the City of New York in sending the November 2025 letter to Shopify were the attorneys general of Arizona, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Utah, Vermont, Washington, Wisconsin, and the Commonwealth of Puerto Rico.

LOS ANGELES — California Attorney General Rob Bonta today announced the creation of the first-of-its-kind Affordability Response Team within the California Department of Justice (DOJ). The Affordability Response Team will draw on the knowledge of experts from sections across the department, working together to find, investigate, and go after individuals and corporations deploying unlawful practices that are making life unaffordable for the people of California.

“Californians, we hear you: The cost of living is much too high. For many people in our state the cost of a week off work, a set of new tires, or a trip to the grocery store — let alone a mortgage or a visit to the emergency room — are not within reach,” said Attorney General Bonta. “Today, I am proud to announce the launch of my office’s Affordability Response Team. Comprised of legal experts from across DOJ, the Affordability Response Team will work to investigate and go after practices that are unlawfully raising costs. It will create a pipeline to tackle affordability from all angles — whether it be unlawful behavior by corporations, landlords, scammers, or policies that are driving up prices. Hardworking Californians deserve fair prices, deserve the ability to make enough to meet their basic needs — and also deserve to have the experiences, vacations, and joys that make life richer.”

Californians are facing an affordability crisis of epic proportion — and many cannot see a light at the end of the tunnel. Housing shortages, skyrocketing grocery prices, rising healthcare and childcare costs, predatory corporate behavior, and the federal government’s unstable economic policies are all making it difficult not only to cover the basics, but to enjoy many of the things hardworking Americans should be able to afford — like a family vacation or a dinner out. The affordability crisis disproportionately impacts low-income households, communities of color, individuals with disabilities, and young adults. In fact, 23% of California’s young adults ages 18–24 live in poverty. And seven in 10 Californians feel that healthcare expenses place a financial strain on their household.

Because these challenges are entrenched and complex, tackling the affordability crisis requires creative thinking and a willingness to attack the problem from all angles. As the top law enforcement officer of California, Attorney General Bonta has been engaged in work that goes after illegal conduct contributing to rising costs. The creation of the Affordability Response Team will amplify DOJ’s ongoing focus on affordability, to allow this work to continue, create a pipeline for continued enforcement, and signal to bad actors that California is zeroed in on this.

THE AFFORDABILITY CRISIS 

Americans across the country are feeling squeezed by a wall of rising costs.

Already high food prices are predicted to increase by 3.4% over the next year and a growing number of people are skipping meals or relying on food banks because of rising food costs. Utility prices and gas prices have also increased, at the same time, wages have stagnated or declined for many workers. Since 1970’s, wages for the bottom 90% of earners have increased 44%, while wages for the top 1% of earners have risen more than 180%. More Americans are taking on debt because of the rising cost of necessities. Credit card debt in the U.S. by the end of 2025 hit a record of $1.28 trillion — and in the first quarter of this year, the percentage of credit-card balances that were at least 90 days delinquent rose to 13.12%, the highest level in 15 years.

Not all Americans are feeling the squeeze. As most households are trying to figure out how the numbers are supposed to add up for life in America, demand for luxury yachts and private jets is surging. The top 1% of Americans held 32% of America’s wealth and CEO compensation increased by almost 6% to $17.7 million as company boards rewarded their top executives for bigger profits. President Trump has said he doesn’t think about Americans financial situation and his Administration is walking the talk by exacerbating the affordability crisis with its polices. Policies like rolling back antitrust enforcement that holds large corporations accountable, pursuing international policy that leaves consumers feeling pain at the pump, prioritizing tax cuts for wealthier Americans, levying an illegal regime of tariffs, and destroying the agency responsible for protecting Americans from exploitation by big businesses who aren’t playing by the rules. All the while, the President and his own family are profiting wildly from holding public office.

FOCUS AREAS 

The Affordability Response Team will deploy DOJ's tools in these areas:

Keeping the Household Running: Grocery, Gas, and Utility Costs

From cable bills to grocery runs, the household bills Californians grapple with every month seem to be endlessly going up.

Affordability in Action:

• May 2026: Attorney General Bonta Secures End of Unlawful Meat Price Coordination, Announces Settlement with Agri Stats
• April 2026: Naming Names: Attorney General Bonta Secures Public Access to Evidence in Amazon Price Fixing Case

A Roof Over Your Head: Housing & Insurance Costs

Confronting California’s housing shortage, unlawful landlord behavior, and rising home insurance costs.

Affordability in Action:

• February 2026: Attorney General Bonta Announces Settlement with Redding Property Management Company for Violating Tenant Protection Act
• November 2025: Attorney General Bonta Announces $7 Million Settlement with Greystar for Participating in an Algorithmic Rent Alignment Scheme

Relief from Sickening Healthcare Costs

Tackling consolidation in the healthcare industry and the rising costs associated with going to the doctor and paying for prescriptions, so that all Californians can afford the care they need to be well.

Affordability in Action:

• May 2026: Attorney General Bonta Conditionally Approves Proposed Transaction to Ensure Continued Access to Senior Care Services in Fresno County
• March 2026: Attorney General Bonta Opposes Trump Administration’s Proposed Expansion of Catastrophic Health Insurance Plans 

Investing in Our Future: Childcare, Education, & Retirement

Ensuring Californians can care for their families, pursue a livelihood, invest in their future, and plan for every stage of their lives.

Affordability in Action:

• May 2026: Attorney General Bonta Opposes Plan to Weaken Federal Protections for Retirement Investments
• February 2026: Attorney General Bonta Defeats Trump Administration in Court Again, Continues Protecting Over $10 Billion in Child Care and Family Assistance Funding

All Work and Harder to Play: The High Cost of Enjoying Life

From planning a vacation to seeing your favorite band in concert, the joys of life are getting harder and harder to afford. The Affordability Response Team is tackling hidden fees and going after corporate practices hiking up prices for entertainment, tech, and trips.

Affordability in Action:

• April 2026: Attorney General Bonta Celebrates Historic Verdict in Live Nation/Ticketmaster Trial
• July 2024: Attorney General Bonta to Consumers: This Summer, Enjoy California — Without the Hidden Fees

Financial Protection: Protecting Your Hard-Earned Money

Protecting Californians by going after shady practices by big banks, lenders, and policies that unfairly penalize consumers and leave them worse off.

Affordability in Action:

• January 2026: Attorney General Bonta Helps Secure $425 Million Capital One Settlement
• January 2026: We're Going to Need a Bigger Boat: Attorney General Bonta Continues Championing Legislation to Protect California Veterans Against Claim Sharks, Financial Exploitation

Earning Less: Labor, Wages, and the Cost of Doing Business

Championing workers’ rights and maintaining a vibrant, profitable economy go hand in hand.

 Affordability in Action:

• March 2026: Attorney General Bonta Urges Congress to Fix Trump’s Tariff Mess, Refund Americans
• July 2025: Attorney General Bonta Announces Nearly $2 Million Settlement with Janitorial Franchising Companies Barring Use of Franchising to Misclassify Workers

Scams, Scams, Scams!

From social media investment scams to job scams and robocalls, cracking down and sounding the alarm on conduct preying on consumers’ pocketbooks.

Affordability in Action:

• April 2026: All That Glitters isn’t Gold: Attorney General Bonta Warns Californians of LA 2028 Olympic Games Ticket Scams
• August 2025: The Robocall Task Force Strikes Again! Attorney General Bonta Launches Operation Robocall Roundup

Click here to learn more about DOJ’s Recent Affordability Work.

RESOURCES — You Tell Us, What Corporations or Practices Should We Know About?

Housing: The Housing Justice Team reminds Californians that they can send complaints or tips related to housing to oag.ca.gov/report. Tenants who need legal help can find legal aid resources in their area at www.LawHelpCA.org.

Antitrust: Antitrust laws and their enforcement help protect consumers by ensuring businesses compete fairly, which often results in lower prices, higher quality goods, and more innovative products. Use DOJ’s Antitrust Complaint Form to report anticompetitive conduct — like price fixing, collusion, or monopolization concerns — that potentially violate the antitrust laws.

Consumer/Business/Healthcare: If you have a complaint about a business who is not complying with consumer protection or other laws, consumers can visit DOJ’s reporting page to submit a complaint.

OAKLAND — California Attorney General Rob Bonta today announced conditionally approving the sale and transfer of ownership, control, and governance of Bethel Lutheran Home, Inc. (Bethel), a California nonprofit religious corporation, to for-profit Bayshire Central Valley LLC, a California limited liability company that is doing business as Jericho Care Group, and its newly formed affiliates (Jericho). Bethel has been serving seniors since 1928 and operates a single campus in Fresno County that includes 59 skilled nursing beds, 33 assisted living suites, and 36 independent living cottages. The conditional approval ensures the continued operation of essential senior care services and uninterrupted access for residents. Under California law, any transaction involving the sale, or transfer of control and governance of a nonprofit health facility, must secure the advance approval of the Attorney General’s Office.

“Today’s conditional approval helps ensure that a change in ownership does not disrupt care for residents at Bethel Lutheran Home, which has been part of the Fresno County community for nearly 100 years,” said Attorney General Bonta. “The safeguards outlined in our conditional approval letter will keep services in place, maintain oversight, and protect staffing and finances. We will monitor compliance and enforce the requirements as necessary.”

Jericho operates a range of skilled nursing facilities, residential care facilities for the elderly, assisted living facilities, and senior retirement communities in Fresno and surrounding communities. The terms of the proposed transaction were set forth in the written notice to the Attorney General.

After conducting a review of the proposed transaction, Attorney General Bonta consented to the sale subject to numerous conditions, including:

• Establishing independent state oversight through a Monitor appointed within 90 days of closing, with monitoring authority lasting 10 years.
• Mandating ongoing reporting obligations for 7-10 years, including quarterly and annual compliance reports to both the Monitor and the Attorney General covering staffing, licensing, quality metrics, and regulatory actions.
• Requiring the continued operation of the skilled nursing facility, assisted living/residential care facility, and independent living community for at least 7 years after closing, with maintained licensure, services, and levels of care.
• Mandating compliance for 7 years with all applicable state and federal staffing ratios, and training and competency requirements.
• Requiring for 7 years approval by the Attorney General of any material modifications or rescissions, and requiring 60 days’ notice of any subsequent sale, transfer, or change in ownership.
• Imposing financial safeguards for 10 years, including limits on debt or restructuring that could impair operations, an independent fair market rent determination, and caps on rent increases (generally no more than 3% annually for 10 years).
• Requiring for 7 years the preservation of resident protections, including honoring existing residency agreements, prohibiting discrimination, and maintaining resident and staffing advisory structures (including a Community Advisory Board and a Quality Committee established within 30 days of closing).
• Requiring for 10 years continued Medi-Cal and Medicare participation, including preserving significant access to skilled nursing beds for Medi-Cal beneficiaries. 

The California Department of Justice’s Healthcare Rights and Access Section (HRA) works proactively to increase and protect the affordability, accessibility, and quality of healthcare in California. HRA’s attorneys monitor and contribute to various areas of the Attorney General’s healthcare work, including nonprofit health care transactions; consumer rights; anticompetitive consolidation and conduct in the healthcare market; anticompetitive drug pricing; privacy issues; civil rights, such as reproductive rights and LGBTQ healthcare-related rights; and public health work on tobacco, e-cigarettes, and other products.

OAKLAND — Leading a coalition of five attorneys general, California Attorney General Rob Bonta submitted a comment letter in response to a Request for Information by the Federal Trade Commission (FTC) and the U.S. Department of Justice (U.S. DOJ), which seeks public input on how to improve the federal government’s review of major mergers before they are completed. A February 2026 ruling by the U.S. District Court for the Eastern District of Texas struck down revised merger reporting requirements, and the U.S. Court of Appeals for the Fifth Circuit later declined to pause that decision, leaving the earlier outdated reporting framework in place. In the comment letter, the coalition supports expanding the Hart-Scott-Rodino (HSR) notice and submission requirements — the federal process for notifying the FTC and U.S. DOJ about large mergers before they close.

“State attorneys general have proudly challenged harmful mergers in court, and we will continue doing our part to protect consumers. But strong federal oversight is also essential,” said Attorney General Bonta. “Federal notice and disclosure requirements help regulators identify potentially anticompetitive deals before they are completed, when action is most effective. We urge the FTC and U.S. DOJ to strengthen these tools and better protect competition in healthcare, housing, and other essential sectors of the economy. These mergers can lead to higher costs, lower quality, and fewer choices for consumers.” 

In the comment letter, the attorneys general underscore that:

• Some investments are labeled as “passive,” meaning investors may qualify for an exemption from certain federal reporting requirements if they claim they are not involved in managing or influencing the company. But in practice, these investments can still give investors meaningful influence over business decisions, so the attorneys general urge the agencies to narrow this exemption and ensure it only applies when investors truly do not exercise influence or control.
• Serial acquisitions, where companies grow through a series of smaller transactions instead of one large merger, can sometimes avoid the same level of federal review because each individual deal may fall below reporting thresholds. Sometimes these step-by-step acquisitions are intended to hire the employees of the targeted companies (“acquihires”) and gain a competitive advantage by gathering up talent. The attorneys general call for stronger disclosure of past acquisitions so regulators can better understand the full pattern of consolidation and its impact on competition.
• Current exemptions for real estate investment trusts (REITs) were originally designed to reduce reporting requirements for certain real estate transactions that were not viewed as raising major antitrust concerns. But, as REITs play a growing role in healthcare and residential real estate ownership, the attorneys general recommend eliminating this exemption so that deals involving REITs are fully disclosed and reviewed for their potential competitive impact. 

Joining Attorney General Bonta in submitting the comment letter are the attorneys general of Connecticut, Rhode Island, Washington, and the District of Columbia.

OAKLAND — California Attorney General Rob Bonta today issued the following statement in response to the U.S. Supreme Court’s decision to stay an order by the U.S. Court of Appeals for the Fifth Circuit that would have restricted access to mifepristone by reinstating a medically unnecessary requirement that it be dispensed in person. The stay will remain in effect pending the Fifth Circuit appeal as well as pending review by the Supreme Court, if certiorari is granted. In February 2026, while the case was pending in the district court, Attorney General Bonta joined a multistate amicus brief to support the availability of mifepristone via telehealth. Earlier this month, he also joined an amicus brief urging the U.S. Supreme Court not to restrict telehealth access. 

“When it comes to protecting reproductive rights, California takes a backseat to no one,” said Attorney General Bonta. “Study after study has demonstrated that mifepristone is safe and effective, and we are proud to have fought against the medically unnecessary requirement that patients obtain it in person. As I’ve said before, we should be guided by science, not politics.”

Since the U.S. Food and Drug Administration (FDA) approved mifepristone in 2000, an estimated 7.5 million people in the United States have used the medication safely. Mifepristone, when used in combination with misoprostol, is the FDA-approved regimen used to terminate a pregnancy through 10 weeks. Medication abortion now accounts for 63% of all abortions in the formal U.S. healthcare system, with approximately one in four abortions provided via telehealth.

OAKLAND — California Attorney General Rob Bonta yesterday joined a bipartisan coalition of 21 attorneys general in submitting a comment letter urging the U.S. Food and Drug Administration (FDA) to abandon draft guidance that would ease approvals for flavored e-cigarette products, widely understood to disproportionately worsen youth addiction. Federal law requires that all e-cigarette products receive authorization from the FDA before they can be legally marketed or sold in the United States. The FDA had authorized only tobacco and menthol flavors until May 5, 2026, when it approved two fruit-flavored products. Despite such limited authorization, the market remains flooded with hundreds of thousands of unauthorized flavored products sold in violation of state and federal law. Compounding their previous failures, on May 8, the FDA issued a press release announcing it would not prioritize enforcement against vapes and nicotine pouches marketed without necessary FDA authorization.

“What happened to ‘Make America Healthy Again’? The Trump Administration has failed to deliver lower costs for working families — and, once again, it is failing to safeguard public health,” said Attorney General Bonta. “E-cigarettes are highly addictive and pose significant health risks, with flavored products disproportionately drawing in younger users. My fellow attorneys general and I are calling on the FDA to reverse course and prioritize public health over industry interests.” 

Two months ago, on March 11, FDA released draft guidance that would ignore years of evidence and ease the path to approval for certain flavored products. The guidance opines, ignoring FDA’s own science and history, that certain flavors such as coffees, tea, spices, menthol, and mint are “lower risk” flavors for youth addiction. In reality, extensive research shows that flavored products of all kinds are favored by youth over unflavored tobacco.  

Many jurisdictions have enacted flavored tobacco bans. For example, in California, Senate Bill 793 (Hill, 2020) banned flavored tobacco products (subject to certain exceptions) and tobacco product flavor enhancers. Assembly Bill 3218 (Wood, 2024), which went into effect on January 1, 2025, amended the flavor ban by expanding the definition of flavored products, expanding enforcement power, and creating an Unflavored Tobacco List (UTL). The UTL is a list of unflavored tobacco products that are lawful for sale in California. The Attorney General published the UTL on December 31, 2025.

Attorney General Bonta recently co-led a bipartisan coalition of 25 attorneys general and the City of New York in sending letters to nine major credit card and payment processing companies urging them to take stronger action to prevent the unlawful sale of tobacco and nicotine products, particularly e-cigarettes, online and at brick-and-mortar stores. He also joined a bipartisan coalition of 22 attorneys general in submitting a comment letter to the Centers for Disease Control and Prevention and the U.S. Department of Health and Human Services supporting continuation of the National Youth Tobacco Survey, which is an annual study that assesses smoking and vaping among middle and high school students.

Joining Attorney General Bonta in sending today’s letter are the attorneys general of Arizona, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, and Wisconsin.

U.S. Supreme Court temporarily preserves telehealth access to mifepristone following coalition brief 

OAKLAND — Co-leading a coalition of 22 attorneys general and the Governor of Pennsylvania, California Attorney General Rob Bonta this morning urged the U.S. Supreme Court to halt a recent appellate decision that would restrict access to mifepristone, a safe and effective abortion medication, by reinstating a medically unnecessary requirement that it be dispensed in person. In an amicus brief filed with the Supreme Court, Attorney General Bonta and the coalition argue that the U.S. Court of Appeals for the Fifth Circuit’s May 1, 2026 ruling is not supported by science, would create regulatory and administrative chaos nationwide, and would interfere with states’ ability to protect access to reproductive health care within their borders. Shortly after the coalition filed the amicus brief, Justice Samuel Alito granted an administrative stay, temporarily pausing the Fifth Circuit’s ruling until 5 p.m. (EDT) on Monday, May 11, 2026, while the Court considers applications for a full stay. In February 2026, while the case was pending in the district court, Attorney General Bonta joined a multistate amicus brief to support the availability of mifepristone via telehealth.

“We urged the U.S. Supreme Court to intervene and halt the Fifth Circuit’s ruling, and we welcome that it has temporarily done so. Telehealth has made it easier for women — especially in rural, low-income, and underserved communities — to access mifepristone and obtain reproductive health care,” said Attorney General Bonta. “We should be guided by science, not politics. The in-person dispensing requirement was eliminated because it was medically unnecessary, and there is still no basis for reinstating it.”

Since the U.S. Food and Drug Administration (FDA) approved mifepristone in 2000, an estimated 7.5 million people in the United States have used the medication safely. Mifepristone, when used in combination with misoprostol, is the FDA-approved regimen used to terminate a pregnancy through 10 weeks. Medication abortion now accounts for 63 percent of all abortions in the formal U.S. health care system, with approximately one in four abortions provided via telehealth. 

In 2023, after extensive review, the FDA formally eliminated the in-person dispensing requirement for mifepristone as medically unnecessary. That decision followed years of evidence, including during the COVID-19 pandemic, showing that mifepristone could be safely provided without requiring patients to appear in person. The FDA’s action allowed providers to offer mifepristone by mail through telehealth and enabled patients to obtain the medication from pharmacies, expanding access for patients who face significant barriers to in-person care.

In the amicus brief, Attorney General Bonta and the coalition argue that:

• Reinstating the in-person dispensing requirement would curtail telehealth access to mifepristone, forcing patients to rely on more difficult alternatives or travel for in-person care. Telehealth has become an increasingly important way for patients to access abortion care, with the share of abortions provided through telemedicine growing from five percent in 2022 to 27 percent in 2025.
• The Fifth Circuit’s ruling would disrupt care in states like California, where abortion remains legal and protected. Since the U.S. Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization, clinics in states that protect abortion access have faced increased demand from both in-state and out-of-state patients. By forcing more patients to seek in-person care, the Fifth Circuit’s ruling would place new strain on clinics and health care systems that are already stretched.
• The Fifth Circuit’s ruling undermines states’ sovereign authority to protect and expand access to reproductive health care. In the wake of the Supreme Court’s Dobbs decision, which eliminated the federal constitutional right to abortion and returned regulation of abortion to the states, many states took swift executive and legislative action to safeguard reproductive rights and expand access to medication abortion. The attorneys general argue that courts cannot leverage medically unnecessary federal drug regulations to override those state policy choices or impose unnecessary barriers to care in states where abortion is legal. 

Today’s brief was co-led by Attorney General Bonta and the attorneys general of New York, Massachusetts, and Washington. They were joined by the attorneys general of Arizona, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Vermont, Virginia, and the District of Columbia, as well as the Governor of Pennsylvania.

Settlement includes first-in-state injunctive terms, $2 million in penalties, and $300,000 in restitution

OAKLAND — California Attorney General Rob Bonta announced reaching a settlement with Aspen Dental Management, Inc. (Aspen Dental) for allegedly violating California’s ban on the corporate practice of dentistry and engaging in false and misleading advertising. Owned by private equity firms, Aspen Dental describes itself as a dental support organization that provides business management and administrative services to dental offices, each of which operates under the “Aspen Dental” name and branding. However, the company is alleged to have exceeded that role by, among other things, interfering with and unlawfully directing the practice, ownership, and management of dentistry in California. The settlement, which remains subject to court approval, includes unprecedented injunctive terms to protect California consumers and clinical staff, $2 million in penalties, and $300,000 in restitution funds for certain patients.  

“As Americans face an affordability crisis, there is no room for unlawful business practices that can increase healthcare costs or harm consumers. We allege that Aspen Dental went beyond providing business support services and became involved in managing dental operations, while also using advertising that misrepresented services to consumers,” said Attorney General Bonta. “With this settlement, my office is making clear that patient care must remain in the hands of licensed professionals. If you believe you are a victim of false or misleading advertising, please report it to oag.ca.gov/report.” 

Since its founding in 1998, Aspen Dental has expanded to more than a thousand offices nationwide. It entered California in 2019 and has since opened 19 offices and served tens of thousands of patients. As part of this expansion, it is alleged that Aspen Dental did not contract with existing dental offices, but rather selected, purchased, staffed, and advertised its offices without clearly identifying an independent dentist-owner. For example, Aspen Dental designed, built out, and furnished all of its offices and made detailed decisions about each location, down to the artwork in bathrooms. It also selected, purchased, and installed all dental equipment across offices.

Aspen Dental also encouraged the sale of particular products and services through direct incentives to practices’ clinical employees. For example, Aspen Dental developed and implemented an incentive program for hygienists to encourage the sale of clear aligners. The program offered hygienists $50 per sale to new patients or $100 per sale to existing patients. Business practices of this kind limited dentist-owners, restricted staff, misguided patients, and purportedly violated California’s ban on the corporate practice of dentistry and California’s Unfair Competition Law. 

Further, many advertisements that Aspen Dental created contained misleading and/or false representations, including misleading testimonials, ambiguity, misleading cost claims, and inexact pricing language. Some Aspen Dental advertisements represented that its offices worked with all insurance or no insurance. However, Aspen Dental offices did not accept state or federally funded insurance programs. Other advertisements described low prices for certain products or procedures without clearly disclosing the factors that affect the price or what’s provided.

As a part of the settlement, Aspen Dental has agreed to $2 million in penalties, $300,000 in restitution funds, and injunctive terms, including:

• Not replacing any practice owner with another dentist of its choosing.
• Not requiring practice owners to effectively give up ownership of any dental practices if they decide to terminate their contractual relationship with Aspen Dental.
• Not owning the property for any practice. 
• Not practicing dentistry, including but not limited to owning or managing any dental office.
• Not basing service fees on revenue, sales, or profits.
• Not suggesting, directing, or encouraging any licensed clinician, other than a practice owner, to sell or increase revenue for any service or product.
• Not compensating any of its employees based on the sales or revenue of practices.
• Not paying any practice employees incentives based on practice sales, revenue, or profit, including the sale of a particular service or product.
• Discontinuing the use of and not enforcing any existing contractual provision that restricts where any licensed clinician may practice or be employed. 
• Providing a written fee schedule for products and laboratory services.
• Registering with the Dental Board of California as a Dental Group Advertising and Referral Service. 
• Clearly and conspicuously identifying the practice owners name when creating, publishing, or disseminating advertisements.

Coalition also requests meetings with each company to comprehensively address the unlawful sales

OAKLAND — California Attorney General Rob Bonta today announced co-leading a bipartisan coalition of 25 attorneys general and the City of New York in sending letters to nine major credit card and payment processing companies urging them to take stronger action to prevent the unlawful sale of tobacco and nicotine products, particularly e-cigarettes, online and at brick-and-mortar stores. In the early 2000s, states partnered with credit card companies and payment processors to reduce youth access to conventional cigarettes sold online. While progress was made, e-cigarette use among young people has grown exponentially over the past fifteen years, creating new challenges that require a comprehensive solution. E-cigarettes are highly addictive and pose significant health risks.

The letters were sent to American Express, Capital One, Citigroup, Mastercard, Visa, PayPal, Stripe, Sezzle, and Block (operator of Square, Cash App, and Afterpay), and request that each company provide a response outlining its availability within 15 days. In the letters, the coalition also noted recent engagement by attorneys general with Shopify Inc. regarding unlawful e-cigarette sales occurring through its e-commerce platform as well as other actions they have taken against illegal online sellers, including litigation and referrals to federal authorities for placement on the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Noncompliant List.

“Illegal e-cigarette sales remain widespread, posing a serious public health concern and requiring a more robust response,” said Attorney General Bonta. “Payment processors and financial service companies have a responsibility to ensure their platforms are not being used to facilitate these illegal sales. We are calling on nine major credit card processors to be part of the solution and help protect our communities — especially our kids.”

Federal, state, and local governments across the nation have been working on accelerating policies and programs to reduce e-cigarette use among youth. 

Under federal law, every new tobacco product must receive authorization from the U.S. Food and Drug Administration (FDA) before it can be legally marketed and sold in the United States. To date, the FDA has authorized only 41 e-cigarette products — none in flavors other than tobacco and menthol. Nearly all e-cigarettes sold by online retailers have not received FDA authorization and are therefore considered unlawful “adulterated” tobacco products under federal law. “Adulterated” tobacco products cannot legally be sold or shipped in interstate commerce. Additionally, the federal Prevent All Cigarette Trafficking (PACT) Act imposes strict requirements on online e-cigarette sellers, including age verification, labeling, tax compliance, and compliance with all laws applicable to the sale of e-cigarette products.

Many jurisdictions have enacted flavored tobacco bans, while some states prohibit all direct-to-consumer online e-cigarette sales entirely. For example, in California, Senate Bill 793 (Hill, 2020) banned flavored tobacco products (subject to certain exceptions) and tobacco product flavor enhancers. Assembly Bill 3218 (Wood, 2024), which went into effect on January 1, 2025, amended the flavor ban by expanding the definition of flavored products, expanding enforcement power, and creating an Unflavored Tobacco List (UTL). The UTL is a list of unflavored tobacco products that are lawful for sale in California. The Attorney General published the UTL on December 31, 2025.

Today’s letters were co-led by the offices of Attorney General Bonta, Pennsylvania Attorney General Dave Sunday, New York Attorney General Letitia James, and the City of New York. They were joined by the offices of the attorneys general of Arizona, Connecticut, Delaware, Hawaii, Illinois, Indiana, Maine, Maryland, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oregon, Rhode Island, Tennessee, Vermont, Washington, Wisconsin, and the Commonwealth of Puerto Rico.