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What you need to know: New laws will strengthen consumer protections and help save Californians money.
September 24, 2024 - SACRAMENTO – Governor Gavin Newsom signed a package of bills that will strengthen protections for consumers, addressing issues that have put financial strain on Californians while setting new standards for transparency and accountability across industries.
“Nobody wants to get ripped off, whether it’s a small subscription fee that’s seemingly impossible to cancel or massive medical debts which force families into financial ruin. We’re strengthening protections for Californians across the board and helping save consumers money.”
Governor Gavin Newsom
Medical debt relief
SB 1061 by Senator Monique Limón (D-Santa Barbara) targets the devastating impact of medical debt on consumers. Under this new law, medical debt will no longer be included on consumers’ credit reports, ensuring that people are not penalized for the high costs of necessary healthcare. The bill also prohibits using any medical debt listed on a credit report as a negative factor when making credit decisions, and gives individuals more room to address their medical bills before debt collection and reporting actions can take place.
“I am proud to author legislation to provide relief to Californians suffering from the burden of medical debt,” said Senator Limón. “No Californian should be unable to secure housing, a loan, or even a job because they accessed necessary medical care. With this new law, California is stepping up to protect consumers impacted by the effects of medical debt.”
Making it easier to cancel subscriptions
AB 2863 by Assemblymember Pilar Schiavo (D-Chatsworth) addresses complicated auto-renewing subscription services that are easy to sign up for but hard to cancel. The bill requires companies offering automatic renewals and continuous services to provide consumers a means to cancel the subscription using the same medium they used to sign up; for example, a person who subscribes online has to be given an online click-to-cancel option. This ensures that consumers can easily exit from services they no longer want, without being trapped by confusing processes or hidden fees.
“At a time when too many in our community are struggling, unwanted subscription renewals can really add up. AB 2863 is the most comprehensive ‘Click to Cancel’ legislation in the nation, ensuring Californians can cancel unwanted automatic subscription renewals just as easily as they signed up – with just a click or two,” said Assemblymember Schiavo. “California is setting a model for the nation on protecting consumers from unnecessary charges – giving them more control over their finances and helping to ensure fair business practices, providing a win for both consumers and small businesses. I’m grateful that this important legislation was signed, as it will mean more money in the pockets of people throughout our community.”
Protecting against unfair fees
AB 2017 by Assemblymember Tim Grayson (D-Concord) and SB 1075 by Senator Steven Bradford (D-Gardena) address unfair banking practices. AB 2017 prohibits certain banks and credit unions from charging nonsufficient funds fees when a transaction is declined due to the consumer having insufficient funds. SB 1075 sets limits on the amount credit unions can charge for overdraft fees. These bills aim to protect lower-income Californians that are disproportionately impacted by financial fees that can push them deeper into financial hardship.
Additional consumer protection measures signed into law
- AB 1849 by Assemblymember Tim Grayson (D-Concord) – Song-Beverly Consumer Warranty Act: services and repairs: travel trailers and motor homes (signed earlier this year).
- AB 1900 by Assemblymember Dr. Akilah Weber (D-San Diego) – Consumer refunds: nondisclosure agreements (signed earlier this year).
- AB 1971 by Assemblymember Dawn Addis (D-Morro Bay) – Administration of standardized tests.
- AB 2202 by Assemblymember Anthony Rendon (D-Lakewood) – Short-term rentals: disclosure: cleaning tasks.
- AB 2297 by Assemblymember Laura Friedman (D-Glendale) – Hospital and Emergency Physician Fair Pricing Policies.
- AB 2347 by Assemblymember Ash Kalra (D-San Jose) – Summary proceedings for obtaining possession of real property: procedural requirements.
- AB 2426 by Assemblymember Jacqui Irwin (D-Thousand Oaks) – Consumer protection: false advertising: digital goods.
- AB 2801 by Assemblymember Laura Friedman (D-Glendale) – Tenancy: Security Deposits (signed earlier this year).
- AB 2837 by Assemblymember Rebecca Bauer-Kahan (D-Orinda) – Civil actions: enforcement of money judgments.
- AB 2992 by Assemblymember Stephanie Nguyen (D-Elk Grove) – Real Estate Law: buyer-broker representation agreements.
- AB 3108 by Assemblymember Reginald Byron Jones-Sawyer, Sr. (D-Los Angeles) – Business: mortgage fraud.
- AB 3283 by the Committee on Judiciary – Enforcement of judgments: claims of exemption (signed earlier this year).
- SB 919 by Senator Thomas Umberg (D-Santa Ana) – Franchise Investment Law: franchise brokers.
- SB 924 by Senator Steven Bradford (D-Gardena) – Tenancy: credit reporting: lower income households.
- SB 1286 by Senator Dave Min (D-Irvine) – Rosenthal Fair Debt Collection Practices Act: covered debt: commercial debts.
Source: Office of the Governor
