Your rights as a consumer

As a consumer, you have the right to be treated fairly — whether you are buying groceries, taking out a loan, renting a home, or paying a utility bill. 

 

California has some of the strongest consumer protection laws in the country, and there are state and federal agencies whose job is to make sure businesses follow the rules. If a business cheats you, overcharges you, or treats you unfairly, there's help available.

 

This page explains some of the most common consumer rights issues and where you can go for help.

 

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Unfair price increases

Price gouging during emergencies

When there is a disaster or emergency, some stores charge way too much for things people need — like water, food, gas, or medicine. In California, it is illegal to raise prices more than 10% during a state of emergency. This also includes prices for rental housing after a declaration of emergency.

You can file a claim against someone who price gouged you for the money you lost, a restraining order to stop them (injunctive relief), and up to $2,500 per violation. And you can report it to the Attorney General's Office. The business may also be subject to criminal prosecution, which could include jail time and a fine of up to $10,000.

Deceptive pricing

Some stores advertise a fake "original" price to make a sale look like a better deal than it really is. For example, a store might mark something up just so they can mark it back down right away and call it a sale. When a store advertises a price as a sale or discount, the original price has to be real (and have been the actual price for the last 90 days). It is also illegal to list a price that hides fees and does not include all required fees or charges (other than certain taxes and sipping costs).

You can file a claim against a business that used deceptive pricing on you for the money you lost, penalties of up to $1,000 per violation, and attorney's fees. And you can report it to the Attorney General's Office. 

Utility rate increases

Electric, gas, and water companies cannot raise your rates whenever they want. In California, they have to ask for permission first and prove the increase is justified. The California Public Utilities Commission (CPUC) reviews these requests and decides whether to approve them. You can follow rate cases and even submit comments.

Insurance rate increases

Insurance companies in California have to get rate increases approved by the state before they can charge you more. The California Department of Insurance reviews these requests. If a company raises your rates without approval, or if you think an increase is unfair, you can file a complaint.

Fair lending—Getting treated fairly when you borrow money 

When you apply for a loan — like for a house, car, or credit card — the lender has to treat you fairly. They cannot say no or charge you more because of your race, color, religion, national origin, sex, age, or disability. This is the law. If you think a bank or lender treated you unfairly, you can file a complaint.

Predatory lending—Unfair or deceptive loans

Some lenders target people who need money badly — like people with low incomes or poor credit. They offer loans that seem helpful but come with very high interest rates, hidden fees, or terms that are almost impossible to meet. This can trap people in a cycle of debt that is very hard to get out of. Before you sign any loan, make sure you understand all the costs and terms. If something doesn't feel right, get help before you sign.

Debt collection harassment

If you owe money, a debt collector may contact you. But they have to follow the rules. They cannot call you in the middle of the night, use threatening or rude language, lie to you about what you owe, or pretend to be a lawyer or government official. You have the right to ask them in writing to stop contacting you. If they break the rules, you can report them or even sue them. 

Scams and fraud

Scammers try to steal your money or personal information. They may call, text, or email you pretending to be the IRS, Social Security, your bank, or even a family member in trouble. They often ask you to pay with gift cards, wire transfers, or cryptocurrency — because those are hard to trace or get back. If something feels wrong, stop and check before you do anything. Never give out your personal information to someone who contacted you first.

Auto loans and car dealer tricks

Buying a car can be confusing, and some dealers use tricks to get you to pay more than you should. They may add fees you didn't agree to, change the loan terms after you've already agreed, or pressure you to buy extras you don't need. You have the right to know the full price and all loan terms before you sign anything. Take your time, read everything, and don't let anyone rush you. 

Utility shutoffs and help

If you are having trouble paying your electric, gas, or water bill, you may have rights and options. California utility companies must follow rules about when and how they can shut off your service. You may also qualify for programs that lower your bill or help you catch up on what you owe. 

Medical debt

Medical bills can be very high and confusing. In California, hospitals must offer free or reduced-cost care to people who qualify. You have the right to ask for an itemized bill and to dispute charges you don't understand or didn't agree to. Medical debt also has new protections in California— it can no longer affect your credit score in many situations. 

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