California Small Business Owners Sound Alarm on Harmful Tech Policy Proposals

SACRAMENTO, California (August 20, 2025) – Earlier today, Michelle Mak, founder of Mewl Baby, and Jerick Sobie, co-owner of Lucky Feet Shoes, spoke out against Assembly Bills 566, 1018, and 446. 

These bills would stifle small businesses’ ability to reach new customers, grow, and compete with bigger companies. AB 1018 would impose burdensome new requirements on the companies that build affordable automated tools — likely forcing them to raise prices for their customers, including small businesses. AB 446 would restrict small businesses’ ability to use basic data to offer promotions, making it harder to attract customers, offer fair pricing, and compete with national chains. AB 566’s proposed opt-out mechanisms would inadvertently cause small businesses to lose access to the data that powers their digital ads —  making it harder for them to reach customers and thrive. 

“Building and running a business is already challenging, especially here in California, where navigating new regulations is often a struggle,” Sobie said. “For small businesses like mine, the added burdens of AB 1018 could force us to abandon AI tools altogether, and soon, the benefits they provide would become a luxury only large companies can afford.” Sobie also noted that AB 566 threatens businesses like his, saying, “Personalized ads are a critical tool for us to connect with consumers at an affordable price. Small businesses don’t have the large budgets needed for traditional forms of advertising, and personalized digital ads are often our best chance to compete.”

“California small businesses depend on data-driven promotions to connect with customers, build loyalty, and compete with national chains. AB 446 would restrict common, privacy-safe practices, like offering discounts on items left in carts, coupons for frequently purchased products, or promotions to likely buyers,” Mak said. “For my business, customer relationships are everything. Losing these tools would make it harder to reward loyal customers, welcome new ones, and keep products accessible, forcing me to spend more on less effective marketing and limiting my ability to compete.”AB 566 is awaiting a floor vote in the Senate, while AB 1018 and AB 446 have been referred to the Suspense File in the Senate Appropriations Committee. View the full press conference here.