California

Overview: Just as AI-powered tools are becoming affordable and helping California small businesses grow and compete, lawmakers in Sacramento are considering a bill (AB 1018) that would make these tools harder and more expensive to use. 

The Problem: AB 1018 would impose strict new regulations on companies that build affordable automated tools — the kind of tools small businesses use every day to respond to customers, flag fraud, help with scheduling, or assist employees with benefit choices. 

The Impact: AB 1018’s costly mandates would force the companies that make and provide these tools to raise prices on their customers, including small businesses. Small businesses need affordable access to technology, not more red tape that makes it harder to compete and succeed. 

California small business leaders: Sign our letter urging lawmakers to oppose AB 1018 and protect small businesses’ access to AI tools! 

Sponsor: Assemblymember Rebecca Bauer-Kahan

Overview: Data-powered digital advertising helps millions of small businesses find customers, grow, and compete with larger companies. AB 566 would require internet browsers to prominently display a setting that enables customers to send businesses an opt-out request. 

The Problem: Consumers rarely read or understand opt-out notices; many hastily click “yes” or “no” without understanding the implications of their choice. If large numbers of people opt out, digital advertising platforms will become less effective — making it far harder and more expensive for small businesses to reach customers.

The impact: AB 566 could seriously hurt California small businesses. Less effective digital advertising would likely lead to reduced website traffic and sales, and could mean businesses have to spend more money — on less effective ads — to reach the same number of customers.

AB 566 Sponsor: Assemblymember Josh Lowenthal

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 a customer’s online shopping cart, or coupons for people who are likely to buy.

The Problem: AB 446 would restrict small businesses’ ability to use basic data to offer these common promotions, making it harder for them to grow and compete. 

The Impact: AB 446 could make it harder for small businesses to attract customers, offer competitive pricing, and grow — putting them at a disadvantage against national chains with larger marketing budgets. 

Bill sponsors: Assemblymember Chris Ward, Assemblymember Liz Ortega, Assemblymember Lori Wilson