Ahead of the Holiday Season, Attorney General Bonta Warns Consumers of Shopping Scams and Fraud

OAKLAND — California Attorney General Rob Bonta today urged shoppers to be on the lookout for common scams this holiday season and offered tips on how to shop safely. As Black Friday and Cyber Monday quickly approach, Californians should stay alert and take action to protect themselves and their loved ones from purchases that can cause headaches and heartbreak.   

“As the holiday season approaches and folks look for the best deals, consumers should slow down and check their safety list twice,” said Attorney General Bonta. “I urge Californians to know their rights, familiarize themselves with shopping pitfalls, and report scams and illegal activity to my office and local law enforcement agencies. Happy and safe shopping, California!”

Be On the Lookout For: 

Gift Card Draining  

Gift card draining is a scam in which bad actors record pin numbers and other information from unpurchased gift cards. Once those cards are purchased by unsuspecting consumers, and money is loaded into the card, the scammer immediately uses the numbers to make purchases, leaving buyers with worthless gift cards. 

When purchasing a gift card, make sure the card is sealed and the protective cover and tape covering the pin is intact; remember to keep the store receipt in case the gift card you purchase is found to have been compromised. If a purchased gift card is compromised, report it to the gift card company directly, ask for a freeze on the card, and request a refund. You may also file a complaint with our office at oag.ca.gov/report. 

Hidden Fees 

Check your receipts! In California most hidden fees are illegal. Senate Bill 478 (SB 478) requires that the price listed includes all mandatory charges consumers will pay. SB 478, which went into effect on July 1, 2024, makes it illegal for a business to advertise or list a price for a good or service that does not include all required fees or charges except for certain government taxes and shipping costs. 

Mandatory fees charged by restaurants, bars, and other select food vendors are exempted from SB 478’s requirements so long as the fee is clearly and conspicuously displayed on the menu. Consumers who observe apparent violations are encouraged to have a conversation with the business about coming into compliance. Consumers, employees, and competitor businesses who observe apparent violations can also file a complaint with our office at oag.ca.gov/report.

Gender-Based Price Differences

Under AB 1287, businesses are prohibited from charging different prices for substantially similar goods based on the gender of the product’s target audience — a practice known as the “Pink Tax” when it is used to charge women higher prices than men for essentially the same goods. If you have seen or believe you are the victim of illegal gender-based price differences, please file a complaint at oag.ca.gov/report.

Lack of a Gender-Neutral Products Section

Does your department store have a gender-neutral children section? As of January 1, 2024, large retail department stores that sell childcare items or toys must maintain a gender-neutral section for these items. Under AB 1084, retail department stores that have physical locations in California and 500 or more employees across all California locations must maintain a gender-neutral section, where a reasonable selection of the childcare items and toys for children that they sell must be displayed, regardless of whether these products are traditionally marketed for boys or girls. By requiring large retailers to maintain a gender-neutral section, AB 1084 makes it more difficult for these retailers to engage in gender-based pricing discrimination and reduces the imposition of gender stereotypes on children.

If you do not see an adequate gender-neutral product section in a large retail department store in California that you believe is covered by this law, you may take pictures, document, and file a complaint with our office at oag.ca.gov/report. 

Tips for Safe Shopping:

• Take time to compare products. To get the best deal, do research, check product comparison sites, and read online reviews.
• Be suspicious of a price or deal that seems too good to be true. Chances are, it probably is. There is always the possibility that the seller may not send you anything, or the item you get may be counterfeit or stolen.
• Check to see if a business is legitimate. Search online for customer feedback, complaints, and other information that will help you determine whether a seller is legitimate or trustworthy. More information on how to check a company’s background can be found here.  
• Use a credit card when shopping. Shopping with a credit card allows you to dispute charges if something goes wrong. Cash, money order, cryptocurrency, or wire transfers do not provide you with the same ability to reverse the charge. If you receive an unauthorized or incorrect charge on your credit card, you can follow these steps to dispute the charge.
• Give gifts, not personal information. Before providing any personal or financial information online, always make sure that the website you are on is secure. You can check this by looking at the URL address to see if it begins with "https" (the “s” indicates it’s secure) and/or has a lock icon displayed, typically on the left-hand side. Do not provide your credit card number, checking account, or social security number via email, as this is never a safe way to transmit financial information. You can find more tips regarding online purchases here.
• Don’t open links from unsolicited text messages. You may receive text messages from unknown numbers offering discount codes or access to exclusive sales. Think twice before clicking on these links, as they may expose you to a scam, hacker, downloadable malware, or add your number to a calling list without your consent. 
• Close accounts on websites and apps that you no longer need. By closing your accounts, you remove private data from services you no longer use and minimize your digital footprint. You have the right to delete your personal information under the California Consumer Privacy Act. More information on data privacy and security can be found here.
• Understand the pitfalls of zero-interest financing offers. While a company may advertise a zero-interest rate, be aware that not everyone will qualify. Oftentimes, qualifying for zero-interest financing requires you to have a near-perfect credit score. Zero-interest financing may also come with certain restrictions, and in many cases the offer may just be an introductory rate, with a very high-interest rate once the introductory period ends. You can find additional information on zero-interest financing here.
• Be cautious about “Buy Now, Pay Later” financing. Buy now, pay later offers can come with hefty interest rates and late fees, especially if you aren’t able to make payments on time. Late payments can also hurt your credit and result in lawsuits by debt collectors. You can find additional information on buy, now pay later financing here.