Bill > AB637

This bill addresses false or misleading commercial communications during states of emergency, specifically targeting businesses that might exploit disaster victims. The legislation creates new legal provisions to prevent and penalize deceptive advertising practices in the aftermath of disasters like wildfires, extreme weather events, and earthquakes. Under the bill, a "commercial disaster communication" is defined as an advertisement targeted at people in disaster-affected areas, either promoting for-profit services related to disaster losses or using the name of a specific emergency-declared geographic area. The bill makes it unlawful to disseminate communications that falsely appear to be from governmental entities or non-profit organizations. To avoid being considered misleading, such communications must include a conspicuous disclosure statement identifying that the communication is an advertisement and is not government-endorsed, and must clearly state the name and incorporation status of the service provider. Violators can face civil penalties of up to $2,500 for an initial violation and $5,000 for subsequent violations. The law applies from the date of a state of emergency declaration until 60 days after its termination, with a maximum duration of 180 calendar days for any single emergency. Enforcement can be initiated by the Attorney General, district attorneys, city attorneys, the Insurance Commissioner, and the Department of Consumer Affairs, and individuals harmed by such communications can also seek damages.

Business and Industry

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB637