Consumer Protection

Proposed rule could block student loan forgiveness for thousands, deter job seekers from entering public service

OAKLAND — California Attorney General Rob Bonta today led a coalition of 22 attorneys general in opposing a proposed U.S. Department of Education (ED) regulation that would exclude some employees from Public Service Loan Forgiveness (PSLF) eligibility based on whether their employers engage in actions that the Trump Administration deems to have a "substantial illegal purpose.” The proposed rule may threaten PSLF eligibility for organizations that are engaged in longstanding, important, and legal activities, such as providing legal or other services to immigrants, providing gender-affirming care to minors, participating in diversity, equity, and inclusion (DEI) initiatives, or engaging in civil protest and the right to assembly. 

“Nationwide, millions of Americans took out student loans to become public servants with the promise of debt relief down the line, and now, the Trump Administration is attempting to hold this debt relief tool hostage from employers that engage in actions the President does not like,” said Attorney General Bonta. “The promise of Public Service Loan Forgiveness allows states like California to attract and retain talent to serve the public good — this is critically important and essential for borrowers who would otherwise be unable to afford serving in the public sector. Today, I urge the U.S. Department of Education to reconsider this vague and arbitrary rule and put public service ahead of retributive political games.”

PUBLIC SERVICE LOAN FORGIVENESS BACKGROUND

In 2007, a bipartisan Congress created PSLF to encourage college graduates to work in the public sector, where salaries are often lower than at for-profit companies. The PSLF program enables public servants who work in eligible government and nonprofit roles to have their qualifying federal student loans forgiven after 10 years of qualifying service and payments. It helps public service employers recruit and retain skilled workers who might otherwise be forced to turn to private sector employment to afford to pay their student loans. Many California state employees are eligible for, actively pursuing, or have already benefited from PSLF as a means of managing the significant student debt that they incurred in preparing for skilled public service careers. 

THE PROPOSED RULE 

ED’s proposed rule would allow the Secretary of Education to disqualify employers from PSLF if she determines they are engaged in “substantially illegal” activity. The vagueness of the rule could empower the Trump Administration to target politically disfavored conduct and may threaten PSLF eligibility for organizations that are engaged in longstanding and legal activities. As drafted, the rule would create uncertainty as to who is an eligible employer and will deter student borrowers from entering public service. If allowed to go into effect, ED could deem the State of California or specific California state agencies ineligible for PSLF, denying loan relief to state employees, and undercutting the state’s ability to recruit and retain skilled employees.  

In sending the comment letter, Attorney General Bonta and the attorneys general of Colorado, Massachusetts, and New York lead the attorneys general of Arizona, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, Washington, and Wisconsin. 

A copy of the letter can be found here.

Delay in implementation halts important public safety reform

OAKLAND — California Attorney General Rob Bonta this week joined eight attorneys general in calling for the review of the Wireline Competition Bureau’s abrupt suspension of the Federal Communication Commission’s (FCC) order capping the cost of phone and video call rates for incarcerated people and their families, indefinitely postponing these reforms without adequate justification. Communication services play an important role in keeping incarcerated people connected to their loved ones and support systems, ultimately reducing disciplinary actions in prison, improving the likelihood of rehabilitation, and mitigating the negative impacts of incarceration on the community. These services can be provided at a reduced cost without sacrificing accessibility or safety, as California and other states that have opted to provide these services free of charge have clearly demonstrated. Earlier this year, Attorney General Bonta and a coalition of attorneys general filed an amicus brief in support of the FCC’s order. 

“States like California have shown that reducing or eliminating the cost of a simple phone call only serves to enhance public safety in communities. When incarcerated people are better connected to their family — and especially their children — they can better reintegrate into their communities upon their release. Stronger communication services allow incarcerated parents to act as supportive figures to their kids — this is associated with better outcomes for children and the communities they belong to. Incarcerated people who keep in touch with their communities have a place to return to, and return to prison at lower rates than those who do not have this opportunity,” said Attorney General Bonta. “Lawmakers and advocates understood the importance connection makes for public safety when Congress passed bipartisan legislation to ensure affordable and accessible communication services for incarcerated people and their families — yet reforms are delayed. I urge the FCC to review these delays in implementation and to move swiftly to give communities across the nation the best chance at building safety, stability, and a brighter future.”

BACKGROUND

Communication services in carceral settings have long been recognized as essential to successful rehabilitation. However, they have historically been provided at significant cost to the user, causing many people to incur thousands of dollars in debt and sacrifice basic needs, such as food or utility payments, to stay connected to their loved ones in correctional facilities. The high cost of staying in touch with incarcerated family members leads more than one in three families to go into debt to pay for phone calls and visits.

THE ORDER

The FCC first addressed this issue in 2015, issuing rate caps for calling services and prohibiting correctional facilities from taking a commission. After a court vacated these reforms, Congress enacted the Martha Wright-Reed Act in 2022, expressly authorizing the FCC to regulate these communications services. 

In September 2024, the FCC issued a new order that, among other things: (1) lowers the maximum rates correctional facilities can charge for phone calls and video communications; (2) establishes rate caps, for the first time, of video communication services; (3) eliminates ancillary fees; and (4) prohibits commissions to correctional facilities. Under the new rate caps, the cost of a 15-minute phone call would drop from as much as $11.35 to $0.90 in large jails and from $12.10 to $1.35 in small jails. While state prisons and juvenile detention facilities in California are already required to provide free phone calls under the Keep Families Connected Act of 2022, local adult jails and federal prisons within the state are not. The FCC’s order would hold local adult jails and federal prisons to a similar standard, meaning that fees for communication services will be greatly reduced or eliminated.

THE DELAY 

In the amicus brief, the attorneys general argue that the Bureau’s suspension of the FCC’s order violates Congress’s mandate that these reforms be implemented within 24 months of the Martha Wright-Reed Act of 2022 and fail to comply with required notice and comment rulemaking, ignoring critical issues and evidence in the record and violating the Bureau’s own regulations. The attorneys general urge the FCC to review the suspension order to ensure that these critical reforms can become effective on the timeline prescribed by Congress and previously established by the FCC without further delay. 

In submitting the letter, Attorney General Bonta joins the attorneys general of Massachusetts, Illinois, Maryland, Minnesota, New Jersey, New York, and Rhode Island. 

A copy of the letter can be found here.

Continues advocating to protect children from harm related to advancing technology  

OAKLAND — California Attorney General Rob Bonta today announced his support of Assembly Bill 1064, also known as the Leading Ethical AI Development (LEAD) for Kids Act. If signed by the Governor, the LEAD for Kids Act, authored by Assemblymember Rebecca Bauer-Kahan (D-Orinda), would take an important first step by prohibiting the availability of so-called “companion chatbots” to children unless the chatbots are not foreseeably capable of certain conduct, such as engaging in sexually explicit interactions, or encouraging children to harm themselves, harm others, participate in illegal activity, among other things. In the last few weeks, Attorney General Bonta has warned 12 of the largest artificial intelligence (AI) companies of their legal responsibility to children as consumers after reports of sexually inappropriate interactions between AI chatbots and children. Attorney General Bonta and Delaware Attorney General Kathy Jennings have also met with OpenAI to discuss deep concerns over increased reports of how OpenAI’s products interact with children, especially after reports that one young Californian died by suicide after engaging with a chatbot. 

“As the fourth largest economy in the world and the home to Silicon Valley, California knows that protecting our kids and pursuing innovation go hand in hand — they are not opposites. When faced with the decision about how their products treat children, we cannot wait for companies developing and deploying AI technologies to decide to prioritize children’s well-being over their profits. It is our job as policymakers and leaders to intervene and ensure that companies are not harming children,” said Attorney General Rob Bonta. “People across the nation — including myself — have become increasingly concerned with AI companies’ failure to protect children who interact with their chatbots. We need policies governing emerging AI technology that put consumer protection — especially when it comes to our most vulnerable consumers — front and center. I thank Assemblymember Rebecca Bauer-Kahan for introducing this legislation, a much needed first step to ensure that our children are not treated as test subjects as AI innovation moves quickly.” 

"Our children deserve a future where technology isn’t designed to exploit their vulnerabilities for profit," said Assemblymember Rebecca Bauer-Kahan (D-Orinda). "It's imperative that we fight for stronger protections and hold companies accountable when their products put children at risk. I'm grateful for Attorney General Bonta's support as we work together to build a safer digital world for California's children."

AI is increasingly integrated into children’s lives without sufficient information about how the technology will impact the children using it. AI companion chatbots are programs designed to form a relationship with a human user by engaging in human-like conversations, offering emotional support, and providing companionship. These chatbots can simulate human personalities and deep emotional relationships and falsely present as friends, romantic companions, or even mental health specialists. Because AI companion chatbots are capable of responding to emotions and behaviors to keep children engaged, the lines between what is real and not real can become increasingly blurred, especially for a still-developing brain. Companion chatbots have already harmed children and adolescents, including incidents of exposure to hypersexualized interactions, as well as encouragement of self-harm and suicide. 

Attorney General Bonta is committed to protecting Californians by responding to emerging and rapidly evolving technology. In the past years, Attorney General Bonta has filed lawsuits against Meta and TikTok. Both lawsuits are ongoing and claim that the social media giants intentionally designed their platforms to addict young people to their mental and physical detriment. 

Earlier this year, Attorney General Bonta issued two legal advisories, reminding consumers of their rights, and advising businesses and healthcare entities who develop, sell, or use AI about their obligations under California law. Although AI technology is developing rapidly, entities must comply with existing California laws. The legal advisories can be found here, and here. In the last few months, Attorney General Bonta sent multiple letters (here and here) to Congressional leaders strongly opposing a 10-year ban on states from enforcing any state law or regulation addressing AI and automated decision-making systems, arguing the rapidly evolving nature of AI technology demands the flexibility and responsiveness that states can provide and urging lawmakers to remove the provision. The ban was struck down in July. 

In 2024, Attorney General Bonta sent a comment letter to the Federal Communications Commission (FCC) related to the potential impact of emerging AI technology on efforts to protect consumers from illegal robocalls or robotexts. In 2023, Attorney General Bonta joined a bipartisan coalition of 54 states and territories in sending a letter to Congressional leaders calling for the creation of an expert commission to study how AI can and is being used to exploit children through child sexual abuse material (CSAM). 

If you need immigration legal assistance, be careful who you hire 

OAKLAND — California Attorney General Rob Bonta today again released guidance to help California's immigrant communities find legitimate immigration help and avoid immigration scams by those seeking to take advantage of fear and uncertainty resulting from President Trump’s cruel mass detention and deportation campaign. The alert released today provides tools for people looking to hire free or low-cost legal help. 

“Before writing a big check and hiring someone offering to help with immigration matters, I urge people to familiarize themselves with existing resources that are often available at little or no cost,” said Attorney General Bonta. “In California, we know that immigrants are the backbone of our communities, a driving force behind our economy, and an essential part of our history as a state. Amid the President’s destructive immigration agenda, there are people who legitimately want to help our immigrant communities. Californians can find legal help at low or no cost with a legal aid organization at www.lawhelpca.org. If folks are outside of California, they can find help at www.immigrationlawhelp.org.” 

Access Free and Low-Cost Legal Assistance 

Visit Law Help CA or Immigration Law Help to find immigration assistance near you.

Find free immigration help through the U.S. Department of Justice’s list of no cost legal service providers and list of accredited representatives.

Protect Yourself from Immigration Scams

If you need help applying for immigration relief, be careful who you hire. Watch out for immigration scams that can cost you thousands of dollars and/or harm your immigration status. Here are some tips and resources to help:  

• Confirm that anyone helping you with your case is licensed or accredited. Only lawyers, accredited representatives, and recognized organizations can give you legal advice or represent you in immigration court. Some immigration consultants may fraudulently call themselves immigration lawyers. If someone claims they are licensed in California or another state and can practice immigration law, confirm they are licensed and in good standing in that particular state by visiting americanbar.org/groups/legal_services/flh-home/flh-lawyer-licensing. If someone claims to be an accredited representative or recognized organization, visit justice.gov/eoir/recognition-accreditation-roster-reports to confirm that information.
• Go to a legitimate legal aid organization for free legal help. Many nonprofit organizations provide free immigration help to low-income individuals. To find a legal aid organization near you, go to lawhelpca.org. 
• Keep your original documents in a safe place. Don’t give your original documents to anyone unless you see proof that the government requires the original document. Make sure you have a trusted emergency contact who can access these documents. Keep copies of all immigration-related documents, including copies of documents filed with the government and communications with the government, in a safe place.
• Do not give money or personal information to anyone who calls, texts, or emails you claiming that there is a problem with your immigration matter. No federal or state agency, including U.S. Citizenship and Immigration Services (USCIS), will ever ask for your personal information or payment over the phone, by email, or text. Be skeptical of social media or other ads promising new or quick immigration help. 

If You are the Victim of an Immigration Scam

Report it to the California Department of Justice at oag.ca.gov/report. You can also contact your local District Attorney or county department of consumer affairs.

You can get help from a legitimate legal aid organization at lawhelpca.org.

For more do’s and don’ts, see the full “Protecting Yourself from Immigration Scams” consumer alert here. The alert is available in Spanish here. 

What is Notario Fraud?

Only lawyers, accredited representatives, and recognized organizations can give you legal advice or represent you in immigration court. Immigration consultants — who may call themselves immigration experts, notarios, notaries public, or paralegals — cannot do so. 

In many Spanish-speaking nations, “notarios” are powerful attorneys with special legal credentials. In the United States, however, notary publics are people authorized by state governments to witness the signing of important documents and are not necessarily authorized to provide legal services. A notario público is not authorized to provide people with any legal services related to immigration. 

How to Locate Detained Loved Ones

Try to find your loved one’s Alien Registration number (A-Number), which is on their immigration documents. If someone has not previously had contact with immigration authorities or has not applied for an immigration benefit, they will not have an A number but will be assigned one if detained. To find someone in detention, search locator.ice.gov by their A-Number or by their full name and country of birth. Once you identify the detention center, go to ice.gov/detention-facilities for location, visiting, and other information. Using the A-Number, you can look up immigration court hearing information at acis.eoir.justice.gov. For more information, please visit nilc.org/resources. 

OAKLAND — California Attorney General Rob Bonta today issued a statement regarding the California Second District Court of Appeal’s ruling yesterday granting the California Department of Justice (DOJ) a complete victory, finding that Adir International LLC dba Curacao, and its owner Ron Azarkman (collectively, "Curacao"), unlawfully profited from the chain's largely Latino immigrant customer base. The court found that Curacao, a retail store chain with 10 locations in Southern California, illegally sold credit insurance to its customers. It also reversed the trial court’s finding that Curacao’s account/credit protection fees were lawful and held that such fees are unlawful under California consumer protection law.    

“This court ruling not only found that Curacao broke the law but also affirms what we have known all along — that Curacao took advantage of the very customers it claimed to serve, specifically our Latino immigrant communities,” said Attorney General Bonta. “This victory sends a clear message: The California Department of Justice will not back down. We will not tolerate illegal conduct by businesses and will ensure they are met with full accountability.”   

In 2017, the Attorney General’s Office filed a lawsuit against Curacao alleging that the company was engaging in numerous and pervasive unlawful, unfair, and fraudulent business practices. The lawsuit alleged that Curacao lured in customers by advertising low prices and easy credit, then informed those customers that they could only buy at the advertised price after purchasing ancillary accessories, warranties, or installation services. In other cases, Curacao was alleged to have added items to payment contracts without their customer’s knowledge.

Curacao and Mr. Azarkman previously agreed to provide more than $10 million in relief, and to be subject to a permanent injunction, in a partial settlement of the Attorney General’s claims. Yesterday’s ruling affirms the allegations brought by the DOJ, concluding that the company and its owner violated the Insurance Code. The ruling also reverses the trial court’s findings on the Attorney General’s Unruh Retail Installment Act claims, holding that account/credit protection fees are prohibited under California law. The account/credit protection fees at issue in the case were a significant source of revenue and returned a 97% profit for the company and Mr. Azarkman. 

DOJ was assisted by the Los Angeles County Department of Consumer and Business Affairs, which helped investigate the case.  

A copy of the ruling can be found here.

OAKLAND — California Attorney General Rob Bonta today issued a statement in response to a Ninth Circuit ruling that allows most of SB 976 (Skinner) to become effective while litigation in this case proceeds. SB 976 limits the ability of social media companies and other website operators to use harmful, addictive algorithmic feeds, notifications, and other addictive design features to keep children and teens glued to the companies' platforms for hours. In response to SB 976, a trade association for technology companies — the same companies that commit tremendous resources to design platforms to keep kids glued to the screen — challenged California’s efforts to make the internet less addictive for children. The Ninth Circuit held that the trade association’s challenge is likely to fail. While some parts of SB 976 remain enjoined, the ruling allows the other requirements of this law to come into effect.

“We are pleased the court has allowed the majority of SB 976’s requirements to come into effect. Our children cannot wait. Companies have blatantly shown us that they are willing to use addictive design features, including algorithmic feeds and notifications at all hours of the day and night, to target children and teens, solely to increase their profits,” said Attorney General Bonta. “Through the passage of SB 976, California’s elected representatives sent a strong message: It’s time to put families in control. We remain confident in the underlying case and are committed to enforcing this law and continuing to vigorously defend it in court.”

BACKGROUND 

Excessive time spent online is associated with depression, anxiety, eating disorders, susceptibility to addiction, and interference with daily life — including learning. Every additional hour young people spend online is associated with an increased severity in symptoms of depression. 

California’s own investigations and lawsuits against Meta and TikTok have helped paint a full picture of the scope and intentionality of this public health crisis. California’s lawsuits against Meta and TikTok both claim that the social media giants intentionally designed their platforms to addict young people so they would spend longer on the platforms, to the detriment of their mental and physical health. For example, TikTok knew the harm that could come from young people using its platforms and designed the platform to include features that they knew were uniquely psychologically and physically harmful to young users to keep young people compulsively returning and staying longer.

Coordinated state effort signals nationwide, robust enforcement of important privacy right 

OAKLAND — California Attorney General Rob Bonta, alongside the California Privacy Protection Agency and the attorneys general of Colorado and Connecticut, today announced an investigative sweep involving potential noncompliance with the Global Privacy Control, or GPC, an easy-to-use browser setting or extension that automatically signals to businesses a consumer’s request to stop selling or sharing their personal information to third parties. As part of the sweep announced today, the coalition sent letters to businesses that do not appear to be processing consumer requests to opt out of the sale of their personal information submitted via the GPC as required by law and requested that those businesses come into immediate compliance. This sweep reinforces the three states’ 2025 Data Privacy Day educational efforts on the GPC and California’s prior $1.2 million settlement  with Sephora regarding GPC compliance.

“Californians have the important right to opt-out and take back control of their personal data — and businesses have an obligation to honor this request,” said Attorney General Rob Bonta. “Today, along with our law enforcement partners throughout the country, we have identified businesses refusing to honor consumers’ requests to stop selling their personal data and have asked them to immediately come into compliance with the law. California and our sister states are committed to continued collaboration to actively enforce consumers’ important privacy rights and are paying close attention to business compliance with the Global Privacy Control.”

“In Connecticut, you have the right to access, correct, and delete personal data stored and collected by businesses, and the right to opt-out of the sale of personal data and targeted advertising. And you can install a simple browser extension that indicates your choice to opt-out of this type of commercial tracking. While many businesses have been diligent in understanding these new protections and complying with the law, we are putting violators on notice today that respecting consumer privacy is non-negotiable,” said Attorney General William Tong. 

“Collaboration with our partners in other states is essential to the CPPA’s work. We are proud to join this effort to ensure that consumers’ opt-out rights are honored, and we will continue working across jurisdictions to protect Californians’ privacy,” said Tom Kemp, the CPPA’s Executive Director.  

Data comes from nearly everywhere online, even when people think they’re not revealing anything. It has been estimated that the average person produces 1.7 MB of data per second or 6,120 MB of data per hour. Websites can track and amass personal information and behavioral data like pages visited, time spent on pages, clicks, and detailed purchase information to create and share profiles and inferences about consumers. Apps and other software can collect and transmit personal information as well, including sensitive personal information like a user’s precise geolocation. Preventing third parties from receiving this information is a key step to protecting private information and stopping the proliferation of consumer data in the online ecosystem.

YOUR RIGHT TO OPT-OUT IN CALIFORNIA

The California Consumer Privacy Act (CCPA) vests California consumers with control over the personal information that businesses collect about them, including the right to request that businesses stop selling or sharing their personal information. With some exceptions, businesses cannot sell or share your personal information after they receive your opt-out request unless you later provide authorization allowing them to do so again. Businesses must wait at least 12 months before asking you to opt back in to the sale or sharing of your personal information.  

Consumers interacting with a business online have two options to opt out of the sale of their data:

OPTION 1: Enabling Global Privacy Control 

The GPC is a signal that allows users to automatically indicate to the websites they visit that they would like to opt-out of the “sale” and “sharing” of their personal information. The GPC signal is an easy way to opt-out because a consumer does not have to make individualized requests to opt-out on each website they visit. GPC can be downloaded via a browser extension; some browsers offer a GPC setting. Installing GPC is simple and ensures your personal is protected. 

Click here for a video to show you how to install GPC.

OPTION 2: Opt-Out One Business at a Time 

Businesses that sell personal information must provide a clear and conspicuous “Do Not Sell or Share My Personal Information” link on their website that allows you to submit an opt-out request. Businesses cannot require you to create an account to process your opt-out, but may ask consumers for information necessary to complete the request, such as information necessary to identify the consumer whose information shall cease to be sold or shared by the business.

If you can’t find a business’s “Do Not Sell or Share My Personal Information” link, review its privacy policy to see if it sells or shares personal information. If the business does, it must also include that link in its privacy policy. If a business’s "Do Not Sell My Personal Information" link is not working or difficult to find, you may report the business to our office by visiting oag.ca.gov/report. 

For more information on the CCPA and opting out, please see here. For a tutorial on installing GPC, please see here.

OAKLAND — California Attorney General Rob Bonta and Delaware Attorney General Kathy Jennings this week met with and sent a letter to OpenAI expressing their deep concern over increased reports of how OpenAI’s products interact with children. Because OpenAI operates in California, Attorney General Bonta is currently investigating the company’s proposed financial and governance restructuring. This week's meeting comes a week after Attorney General Bonta and 44 attorneys general sent a letter to 12 of the top AI companies, following reports of sexually inappropriate interactions between AI chatbots and children. 

“I am absolutely horrified by the news of children who have been harmed by their interactions with AI — including one young Californian who died by suicide after interacting with a chatbot. This is extremely worrying for parents, policy makers, and regulatory leaders everywhere — and I certainly expect alarms to be blaring inside the walls of AI companies around the world,” said Attorney General Bonta. “As the fourth largest economy in the world, California knows that protecting our kids and pursuing innovation can and must go hand in hand; they are not opposites. My office, working alongside Delaware Attorney General Jennings, has been reviewing the proposed restructuring of OpenAI. Together, we are particularly concerned with ensuring that the stated safety mission of OpenAI as a non-profit remains front and center. OpenAI purports to build AI to benefit all of humanity. Humanity includes children. And before we can even get to benefiting, we need to get to not harming. This week, I expressed my extreme dismay at OpenAI's current approach to AI safety and made clear that California is paying very close attention to how the company is crafting their policies surrounding AI safety, especially when it comes to interacting with children. Companies developing and deploying AI technologies must exercise sound judgment and must not hurt children. One child harmed is one too many.”

The letter by Attorney General Bonta and Attorney General Jennings to the OpenAI board is attached here.

Law makes it simpler to manage, cancel subscriptions 

OAKLAND — California Attorney General Rob Bonta today issued a consumer alert to remind consumers and businesses that California’s Automatic Renewal Law (Schiavo, 2024) gives consumers important rights when it comes to the renewal of subscription-based services. The law was recently amended, effective July 1, 2025, to make it stronger. 

“That mysterious $7.99 appearing on your credit card bill every month just got easier to identify — and cancel. Under California’s Automatic Renewal Law, businesses must get explicit consent before charging consumers and must give consumers a clear and straightforward method for cancelling unwanted subscriptions,” said Attorney General Bonta. “With the increasing number of online businesses offering subscriptions, it is important to ensure that businesses are acting transparently and that consumers have the power to manage and cancel these subscriptions more easily.”

California’s Automatic Renewal Law applies to consumer services, subscriptions, and plans that continue until the consumer cancels them or that automatically renew. It also applies to arrangements where a consumer receives a free service or product for a “free trial” or limited period and then is charged unless the consumer cancels before the trial period ends.  

Under the law:

• A business must get a consumer’s express affirmative consent to auto-renewal or continuous-service terms. 
• If a subscription, plan, or other service has an initial term of one year or longer that automatically renews, the business must give the consumer notice of the automatic renewal at least 15 days but no more than 45 days before renewal. The notice must include the length and any additional terms of the renewal period, the amount or range of charges, the frequency of charges, and how to cancel.
• For free or discounted trial periods lasting more than 31 days as part of an auto-renewal or continuous-service offer, the business must give the consumer notice of the automatic renewal at least three days but no more than 21 days before the free or discounted period expires. The notice must include the length and any additional terms of the renewal period, the amount or range of charges, the frequency of charges, and how to cancel.
• If a consumer accepts a change in the fee for an existing auto-renewal or continuous-service offer, the business must give the consumer notice at least seven days but no more than 30 days before the fee change takes effect. The notice must include instructions on how to cancel.
• A business must give consumers an annual reminder about their auto-renewal or continuous-service plan. The annual reminder must be sent using the same method of communication as used to enroll in the plan or the method that the consumer generally interacts with the business. The annual reminder must identify the product or service, the frequency and amount of charges, and how a consumer can cancel.
• A business offering an auto-renewal or continuous-service plan must give consumers information on how to cancel. Consumers must be able to cancel using the same method of communication as used to enroll in the plan or the method that the consumer generally interacts with the business. A business must offer a toll-free phone number, email address, or other easy-to-use cancellation method.
• If a consumer enrolled in an auto-renewal or continuous-service plan online, they must be able to cancel it online at will, and the business cannot engage in any steps that obstruct or delay consumer’s ability to cancel immediately.

When and how these requirements may be fulfilled vary. For more information, including details and other requirements, please see the Automatic Renewal Law here. The Automatic Renewal Law is enforced by the Attorney General’s Office, and by District and City attorneys across the state, and it is in addition to the protections offered by other California laws that protect consumers against unlawful, unfair, and deceptive practices, including those that take the form of dark patterns or otherwise interfere with consumer choice.  

Consumers who believe their rights have been violated are encouraged to file a complaint at oag.ca.gov/report.

OAKLAND — California Attorney General Rob Bonta today alerted consumers of ongoing text-based scam activity targeting California taxpayers. Tax fraud scams are a part of a larger universe of government imposter scams, which occur when a person claims to be a government employee in order to obtain a victim’s personal information or for financial gain. These fraudulent texts claim to come from the State of California Franchise Tax Board (FTB) and ask consumers to provide personal information in order to receive their so-called tax refund. In today’s alert, Attorney General Bonta provides Californians with tips to avoid falling victim to tax fraud scams like this one and other government imposter scams. Taxpayers should be especially cautious with their tax, bank account, credit card, and other personal information. 

“Californians: Be on alert for texts from seemingly official government agencies that seem fishy — they might indeed be phishing scams designed to trick you out of your hard-earned money,” said Attorney General Rob Bonta. “Bad actors are getting more sophisticated and show little signs of slowing. I urge Californians to not click on links in texts asking consumers for personal information, visit only official websites, and talk to friends and family who may be unaware of these dangers."

“Sadly, FTB and other California agencies constantly battle bad actors attempting to steal your money. These scammers may impersonate tax agency representatives to steal your personal information," said State Controller and FTB Chair Malia M. Cohen. "If you ever have doubts about the authenticity of a text, email, or phone call claiming to be from FTB, IRS, or any other government agency, contact the agency directly to verify whether there’s an issue that requires your attention.” 

FTB advises Californians not to reply to suspicious text messages, download attachments, or click on links in texts or emails if they are unsure of their authenticity. Verify any suspicious messages by contacting the agency identified directly and visiting official pages only. View FTB’s text messaging page to verify when FTB texts and what information they send. For more information, please see here.

Text-Based Scams 

If you receive a suspicious or unsolicited text message claiming to be from FTB, do not respond or click on any links, as the text may be a phishing scam. Text messaging is particularly dangerous because consumers might hurriedly click on a link and begin entering a password, not realizing that the link is phony and their password is being recorded. These texts may ask for:

• Usernames
• Passwords
• Payment
• Credit and debit card numbers
• Banking information
• PINs
• Social security number  

Other Tax Fraud Scams

Tax-related scams take on various forms and show up every year, especially around tax season. The most common tax-related scams include: 

• Fake phone calls demanding money: Scammers will call you claiming that they are from the Internal Revenue Service (IRS) or the FTB and say that you owe them money. The scammer will harass you and use high-pressure tactics claiming that you will be arrested, deported, or will lose your driver’s license if you don’t pay right now. Sometimes the scammer will even know your Social Security number or fake the caller ID so that it looks like they are calling from the IRS or FTB. Scammers may offer to provide “documentation” or “evidence,” or use the name of a real government official. If a government agency calls you and asks for financial or personal information, hang up and go to the agency’s official website (which should be a .gov website) and call them directly. Government officials will not threaten you with arrest or legal action in exchange for immediate payment. They will not promise to increase your benefits or resolve an issue in exchange for a fee or transfer of funds to a protected account.
• Fake emails: Scammers will send out "phishing" emails that look like they are from the IRS or FTB and claim that you either owe money or are due a refund. They will include links to official-looking websites and ask for either money outright or personal information that will allow them to steal your identity.
• Stolen refunds: Identity thieves will use stolen personal information to file false tax returns in your name and steal your refunds. Scammers will usually file early in the tax season, before you get to it. You won’t learn about the theft until you try to file your taxes.  

Protect Yourself from Tax Fraud Scams

• Protect your personal information: Never provide personal information, such as your Social Security number or bank account information, to someone you do not know.
• Be wary of unsolicited communication: As a rule of thumb, real government officials will never ask for payment in the form of gift cards, prepaid debit cards, wire transfers, Internet currency, or by mailing cash.
• Hang up the phone! While in some cases the IRS or FTB may call a person who owes taxes, the agencies only do so after they have tried to contact you by mail. If you suspect a scam call, immediately hang up or do not respond. The longer you stay on the line, the more likely you are to fall victim to a scam.
• Use a strong password: When preparing your tax return for electronic filing, be sure to use a unique strong password for your online filing accounts. A strong password is eight or more characters, including letters, numbers, and symbols. Use a unique password for each of your tax filing accounts.
• Never sign a blank return: Do not use a tax preparer who asks you to sign a blank tax form.
• Talk to friends and family: Always seek a second opinion from your friends and family.

If you suspect you have been a victim of a tax-related scam, report the scam and any losses to the Internal Revenue Service and/or the California Franchise Tax Board. For more information and resources on tax fraud and other government imposter scams, visit our website at oag.ca.gov/consumers/general/taxes.