California
California is a leader in enacting new policies and regulations, and other states, particularly in the West and Pacific Northwest, follow California’s lead and adopt similar policies. California has over 4.15 million small businesses (SMBs) employing over 7.5 million people. Policymakers must consider the impacts of new laws and regulations on SMBs before supporting legislation.
Key Policy Issues
Antitrust
COMPETE Act (AB 1776)
Overview: AB 1776 would change California antitrust law to discourage digital platforms from integrating products and services that save small businesses money.
The Problem: AB 1776 places widely used digital tools in legal jeopardy. Uncertainty will discourage innovation, delay product development, and increase the cost of integrated services small businesses rely on every day.
The Impact: While the bill is aimed at large tech companies, California’s small businesses will be hit the hardest. The COMPETE Act won’t promote competition—it will cost every small business more than $16,000 per year in lost sales, contributing to a $365 billion loss over the next five years.
Small Business Advocacy: Don’t let California lawmakers make your success even harder than it already is. Take action today by sending a message to California policymakers urging them to oppose AB 1776 and preserve access to affordable digital tools.
Bill sponsor: Assemblymember Cecilia Aguiar-Curry
Status: AB 1776 passed the California State Assembly on May 27, 2026. It is now before the Senate Appropriations Committee and is scheduled for a vote on August 3, 2026.
Digital Economy
Prohibition on Digital Promotions (AB 2564)
Overview: California small businesses use basic data to offer promotions that help them attract customers, build loyalty, and compete with larger chains. These promotions include discounts for loyal patrons, special offers on items left in customer’s online shopping carts, and coupons for people likely to be interested in their products or services.
The Problem: AB 2564 would restrict small businesses’ ability to use basic data to offer common promotions, making it harder for them to grow and compete.
The Impact: AB 2564 will drive prices up for small businesses using digital tools across California by creating litigation risks for businesses that offer digital tools and services.
Small Business Advocacy: As this bill moves through the legislature, we encourage you to email your legislators to inform them of the small business perspective.
Bill sponsor: Assemblymember Chris Ward, Assemblymember Ash Kalra
Status: AB 2564 passed the California Assembly on May 27, 2026 and awaits a vote in the Senate Appropriations Committee.
Key Officials
California Small Business Leaders, You Can Make Your Voice Heard.
It’s crucial that small business leaders like you speak up and make your voice heard to your state’s legislators, especially when they may consider bills that impact your business. Click here to send a letter to your representatives in California urging them to consider the impacts of digital economy laws on SMBs before supporting such legislation.
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