Small Business Owners Fight Back Against Heavy-Handed Digital Mandates

SACRAMENTO, California (July 2, 2025) – Affordability continues to drive the conversation in Sacramento with more than 500 small business owners speaking out against legislation that would stifle competition and limit access to critical digital tools. 

Assembly Bill 566, authored by Assemblymember Josh Lowenthal (D- Long Beach), places restrictions on data-driven advertising that would make personalized ads less effective and more expensive for local business owners. Additionally, Assembly Bill 1018, authored by Assemblymember Rebecca Bauer Kahan (D- Orinda), would impose sweeping new requirements on the use of Automated Decision Systems (ADS), burdening the companies that create these tools with costly mandates and forcing them to raise prices on their customers, which include small businesses.

Todd Bailey, founder of  GreyDot Media, said the proposed changes would directly threaten the tools his business and his clients rely on every day. “We use digital ads to connect with the right customers at an affordable cost,” he said. “AB 566 is a solution looking for a problem. It forces a one-size-fits-all approach that will make advertising harder to manage for small business owners, allowing big corporations to dominate the digital space.” 

Jerick Sobie, the Founder and Co-Owner of Lucky Feet Shoes, echoed those concerns, explaining that AB 566 would harm local businesses and do nothing to help consumers. “If people opt out of all data collection by default, small businesses will struggle to reach the right customers and make sales. People will miss out on ads for things they may actually want, offered by local businesses they want to support,” he said.

Sobie also noted the inconsistency of state policy regarding AB 1018. “California’s state government is actively investing in AI to boost government performance. Small businesses should be encouraged, not penalized, for responsibly using the same kinds of tools to improve operations,” he stated. “It’s frustrating that we are being held to a higher, more expensive standard. Small businesses can’t afford the extra costs.”

Both Bailey and Sobie met with lawmakers earlier this week to voice their concerns, urging legislators to consider the unintended consequences these bills would have on California’s small business community. AB 566 passed the Senate Judiciary Committee on July 1st, and AB 1018 is scheduled to be heard on Tuesday, July 15th.