Golden State Today

As the year 2025 approaches, California is set to implement a series of new laws aimed at enhancing consumer protection. These measures, signed by Governor Gavin Newsom, are designed to address key issues affecting the health, safety, and well-being of Californians.

Governor Newsom emphasized the importance of these changes: “California’s new laws tackle today’s biggest emerging challenges head-on. Through partnership with the Legislature, we’re strengthening public safety, building more housing, and providing more resources for our communities. These practical reforms protect what matters most while creating more opportunities for all Californians.”

Among the new regulations is AB 2017, introduced by Assemblymember Timothy Grayson (D-Concord), which prohibits state-chartered banks and credit unions from charging fees for declined transactions. This law aims to alleviate financial burdens on individuals whose purchases are declined due to insufficient funds.

Senator Monique Limón (D-Santa Barbara) has sponsored SB 1061 to safeguard credit scores from being impacted by medical debt. The legislation prevents credit agencies from listing medical debt on credit reports and stops lenders from considering it in their decisions.

Assemblymember Pilar Schiavo (D-Santa Clarita Valley) has put forward AB 2863 to prevent subscription traps. From July 1, 2025, companies must obtain explicit consent before billing customers after free trials end and provide annual reminders about recurring charges.

For renters in California, new protections will come into effect next year. Under AB 2801 by Assemblymember Friedman and AB 2747 by Assemblymember Haney, landlords must document unit conditions with photos for security deposits and offer tenants options to report rent payments to boost credit scores. Additionally, SB 611 by Senator Menjivar bans excessive fees or higher security deposits for military tenants.

SB 1490 by Senator María Elena Durazo (D-Los Angeles) mandates transparency in food delivery services. Platforms cannot misrepresent fees or include restaurants without consent and must provide an easy way for businesses to opt out if desired.

These legislative measures aim to empower consumers against unfair practices related to unexpected fees, medical debts affecting credit ratings, or unintended subscription charges.