2024 Brings New Privacy Laws Protecting California Consumers
Being victimized by a corporation is life-changing. Victims of their fraudulent actions are often left injured, holding thousands of dollars in medical bills, and looking for compensation. Unfortunately, companies know their way out of these situations, and victims are often left with nothing. That’s why California, a state known for advocating for consumers’ rights, aims to change that with a bill that went into effect on the first day of 2024. Have you been defrauded by a company that misused your information, took advantage of you, or otherwise harmed you? You need an aggressive consumer rights lawyer who’s ready to fight for you. Call the Law Offices of Robin D. Perry & Associates at 562-216-2944 to schedule a consultation with our team of Southern California consumer rights attorneys now.
There are many high-profile cases in which consumers should have been awarded thousands of dollars after being defrauded. In these cases, the businesses either shut down or declared bankruptcy, leaving the victims with nothing. Consider a case against Corinthian Colleges for their predatory lending schemes, which resulted in a $1.1 billion judgment. Unfortunately, this was largely an empty victory—the colleges ceased to exist the year prior and declared bankruptcy. There is a silver lining, though; the judgment could help students seek relief from student loans.
What is Assembly Bill 1366?
Assembly Bill 1366, sponsored by California Attorney General Rob Bonta, was signed into law in October 2023. The law went into effect on January 1, 2024. The goal of this legislation is to protect consumers who are defrauded by companies trying to make a quick buck. The state will establish a Victims of Consumer Fraud Restitution Fund as part of the state’s treasury.
These types of restitution accounts can be funded in several different ways. Attorney General Bonta opted not to charge law-abiding businesses an additional tax in order to cover the wrongdoing of less ethical businesses. Instead, the fund will be covered by payments made by companies that have run afoul of the state’s consumer protection laws. This ensures that payments made by companies engaging in unethical behavior are used to benefit the victims of fraudulent companies.
Why is This Bill Necessary?
This bill is necessary because of the difficulty wronged consumers face when they try to seek compensation after fraud. In some cases, they win in court—only to find that the company has shut down or gone bankrupt, leaving them with no money to collect. Since this is always an option, companies face little risk when they defraud consumers. Innocent consumers are left bearing the brunt of unethical business owners’ decisions and their consequences.
With the introduction of this bill, victims have a way to recover compensation even if the company that defrauded them does not have the financial means to do so.
Supporters of the Bill
This bill was widely supported, with no one filing opposition. Some of its supporters include the Consumer Financial Protection Bureau and the California Low-Income Consumer Coalition. AB 1366 was structured in such a way that there is minimal reason for opposition. Had they funded the Victims of Consumer Fraud Restitution Fund with taxes imposed on companies that abided by the state’s consumer protection laws, there likely would have been significant pushback. When companies go to great lengths to abide by state laws, holding them accountable for bad actors’ decisions is not a popular option.
How This Bill Could Affect You
AB 1366 could help thousands of consumers in the years to come. Companies will likely never stop defrauding people, and those same companies will continue to declare bankruptcy or shut down operations to avoid being held responsible for the harm they’ve caused. Thanks to AB 1366, defrauded consumers can now receive the restitution they are owed. Should you ever be defrauded by a company teetering on the brink of bankruptcy, you’ll still have a way to demand compensation.
Have Your Consumer Rights Been Violated? Contact the Law Offices of Robin D. Perry & Associates Today
One advantage of living in California is the state’s commitment to consumer rights and consumer privacy. If you’ve been defrauded by an unethical company, you have options—and we’re here to help you explore them. Set up a consultation with our team of Southern California consumers’ rights lawyers by reaching out online or calling us at 562-216-2944.
Attorney Robin D. Perry has been part of the Long Beach Community for over 25 years handling business litigation, employment litigation and advising, criminal defense, personal injury and code enforcement defense for businesses.
