California BCSA Attorney on What Companies Need to Know About the New Business + Regulatory Agency

May 22, 2026/Richard Newman

As federal consumer protection decreases, California Governor Newsom announced that it is appointing former Consumer Financial Protection Bureau Director Rohit Chopra to lead California’s new Business and Consumer Services Agency.  The Agency is designed to strengthen California’s efforts to protect consumers and honest businesses, crack down on corporate abuse, and lower costs for Californians.

 

California’s new Business and BCSA is intended to strengthen oversight, improving coordination across departments, and modernize California’s consumer protection framework amid growing threats from weakened federal enforcement.

Chopra previously served as Director of the U.S. Consumer Financial Protection Bureau and as a Commissioner of the Federal Trade Commission, where he led major efforts to crack down on junk fees, corporate misconduct, and unfair practices harming consumers and small businesses.  The new agency, which was established by Governor Newsom through a government reorganization last year will bring together a broad range of licensing, enforcement and other functions that ensure fair competition and treatment for consumers and businesses across a number of sectors of California’s economy.

The agency officially launches July 1, 2026.

 

“While federal agencies are making life more expensive and enriching special interests, California will be firing on all cylinders to make sure markets aren’t rigged against families and small businesses,” said Rohit Chopra. “By bringing together dozens of boards, bureaus, and departments under one roof, California’s new agency will work to protect the public in health care, technology, financial services, and more. I’m grateful to Governor Newsom for the opportunity to serve as the new agency’s Secretary.”

California is stepping up as federal protections are rolled back

The BCSA will advance efforts to:

  • Crack down on junk fees and hidden charges
  • Increase oversight and accountability for oil companies
  • Launch CalRx to lower prescription drug costs
  • Strengthen online privacy and consumer data protections
  • Expand enforcement against scams and predatory practices
  • Increase corporate transparency and accountability

BCSA includes the Department of Alcoholic Beverage Control (ABC), Alcoholic Beverage Control Appeals Board (ABC AB), Department of Cannabis Control (DCC), Cannabis Control Appeals Panel (CCAP), California Horse Racing Board (CHRB), Department of Consumer Affairs (DCA), Department of Real Estate (DRE), and the Department of Financial Protection and Innovation (DFPI)

How Should Consumer-Facing Companies Prepare for the BCSA

Consumer-facing comapnies should contact a Business and Consumer Services Agency defense lawyer to implement preventative compliance controls or in the event of an BCSA investigation.  Contact the author with questions.

Richard B. Newman is a Business and Consumer Services Agency (BCSA) defense attorney at Hinch Newman LLP. 

Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.

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Richard Newman

Richard B. Newman is a nationally recognized FTC advertising compliance, CID investigation and regulatory enforcemetn attorney. He regularly provides advertising counsel and represents clients in high-profile investigations and enforcement proceedings initiated by the Federal Trade Commission, state attorneys general, departments of consumer affairs, and other federal and state agencies with jurisdiction over advertising and marketing practices. Richard is also an ecommerce lawyer and spam defense attorney. His practice additionally focuses upon false advertising defense, data privacy, cybersquatting, intellectual property law and transactional matters relating to the dissemination of national advertising campaigns, including the gamut of affiliate marketing, telemarketing, lead generation, list management and licensing agreements. Richard advises clients on how to minimize the legal risks associated with digital marketing, email marketing, telemarketing, social media influencer campaigns, endorsements and testimonials, negative option marketing models, native advertising, online promotions and comparative advertising,
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About This Blog and Hinch Newman’s Advertising + Marketing Practice

Hinch Newman LLP’s advertising and marketing practice includes two decades successfully resolving some of the highest-profile Federal Trade Commission (FTC) and state attorneys general digital advertising and telemarketing investigations and enforcement actions. As FTC attorneys, the firm possesses superior FTC compliance knowledge and more than 20 years of FTC defense advocacy experience in the areas of advertising, marketing, lead generation, promotions, e-commerce, privacy and intellectual property law. It has also been selected to author the Consumer Protection Section of the prestigious American Lawyer Media International Federal Trade Commission: Law, Practice and Procedure Treatise, a comprehensive resource for developments of concern to advertisers, marketers and legal professionals that practice before the Commission. Through these advertising and marketing law updates, Hinch Newman LLP provides commentary, news and analysis on issues and trends concerning developments of interest to digital marketers, including FTC and state attorneys general advertising compliance, civil investigative demands (CIDs), and administrative/ judicial process. 

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