October 20, 2026
California’s Consumer Watchdog at 100 Days: Advancing a Fair and Competitive Economy
While California’s economy continues to outperform the rest of the country, many families are dealing with financial pain due to the increasing cost of food, gas, and everyday essentials. The latest Consumer Price Index showed inflation continuing to accelerate as war and federal policies push up prices.
Corporate tricks and traps are also costing Americans. AI can be used to perpetrate scams more efficiently and effectively. While the largest corporations are raking in millions in tariff refunds, small businesses and the public haven’t seen a penny. At the same time, federal enforcement of consumer protections on everything from airfares to financial products has evaporated, pushing up costs even further.
This makes the work of California’s new Business and Consumer Services Agency even more critical.
The Agency opened for business about one hundred days ago, consolidating dozens of boards, bureaus, and departments – and their many regulatory and enforcement tools – under one umbrella. We’ve already made progress to crack down on harmful and corrupt practices, help small and independent businesses thrive, and ensure that emerging technologies benefit all Californians.
Here are some of our focuses in the next 100 days and beyond:
First, as artificial intelligence continues to evolve and pose new threats, we are developing initiatives to guard against potential harms and fraud perpetrated through new technology and AI. Building on the launch of the Tech Fraud Task Force and newly enacted state laws on AI, we are analyzing how existing laws administered by the Agency’s departments, boards, and bureaus can be applied now to rein in AI-related abuses. For example, certain applications of agentic AI masquerade as a licensed professional – like doctors, who are regulated by the Medical Board of California under the Agency’s Department of Consumer Affairs. The Agency is ramping up work to ensure that longstanding consumer protections continue to safeguard against predatory tactics and fraud in the digital world.
Second, as federal regulators continue to roll back their oversight, we are working with our departments to pivot licensing and enforcement priorities to act as a critical stopgap for consumers. In addition to filing formal objections to federal policies that harm consumers, our departments are increasing scrutiny in areas where federal regulators previously played a leading role. This also means that when a licensee engages in serious wrongdoing, we will go beyond ministerial fines to force meaningful deterrence.
Third, we are increasing focus on emerging issues facing consumers that don’t fall squarely within the scope of a single Department, Board, or Bureau. For example, we are investigating private equity’s takeover of youth sports, undisclosed kickbacks within a supply chain, and the use of software to algorithmically adjust prices – all crosscutting issues that demand Agency-wide collaboration. We will also streamline how we analyze complaints filed by consumers and small businesses to identify these concerns and coordinate across the Agency to comprehensively address them.
As we continue to build California’s consumer watchdog, we want to hear from you. Share your thoughts on issues and areas of focus to best serve California families and businesses using the form below.
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