Consumer protection: enforcement powers: investigatory subpoena.
The passage of AB 814 would empower local city attorneys in addition to the Attorney General and district attorneys to actively investigate and prosecute unfair business practices. This expansion is significant because it places the responsibility for enforcement closer to affected communities, potentially resulting in more effective local oversight on consumer issues. By allowing city attorneys to issue subpoenas, the law would facilitate more thorough investigations of businesses operating in larger urban areas, aiming to protect consumers more robustly against fraud and deceptive practices.
Assembly Bill 814, introduced by Assembly Member Bloom, seeks to amend Section 16759 of the Business and Professions Code with respect to the enforcement powers concerning consumer protections under the Unfair Competition Law (UCL). The UCL establishes remedies for unlawful, unfair, or fraudulent business practices including misleading advertising. This bill specifically expands the investigatory powers of the Attorney General and district attorneys, allowing them greater authority to issue subpoenas when there is a belief of UCL violations. Importantly, it also extends these powers to city attorneys in large municipalities (populations over 750,000) to enforce potential violations of the UCL.
The sentiment around AB 814 appears to be generally positive among consumer advocacy groups and legislators advocating for stronger consumer protections. Supporters argue that the bill represents a critical step towards enhancing the enforcement capabilities against unfair business practices, hence protecting consumers' rights more effectively. However, there may be concerns among business groups regarding the implications of increased regulatory scrutiny and the resources required to comply with broader investigations initiated by city attorneys.
Notable points of contention regarding AB 814 include the balance between enhanced consumer protection and the potential burden placed on businesses by increased investigative authority. Critics may argue that empowering multiple levels of government could lead to overly aggressive enforcement actions that limit business operations. Furthermore, issues regarding the proper training and resources available for local city attorneys to effectively implement these expanded powers could also arise, leading to discussions about the appropriateness of local enforcement mechanisms in the context of state regulations.