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.