CA AB 637

Title: Advertising: false or misleading commercial disaster communication.
Author: Heath Flora

Summary
AB 637, as amended, Flora. Advertising: false or misleading commercial disaster communication. Existing law generally regulates advertising and, among other things, makes it unlawful for any person, firm, corporation, or association that is a nongovernmental entity to use a seal, emblem, insignia, trade or brand name, or any other term, symbol, or content that reasonably could be interpreted or construed as implying any federal, state, or local government, military veteran entity, or military or veteran service organization connection, approval, or endorsement of any product or service by any means, except as specified. Existing law authorizes the Attorney General or any district attorney, county counsel, city attorney, or city prosecutor to bring an action to enjoin a violation of these advertising provisions or impose a civil penalty of up to $2,500 for each violation. Existing law also imposes a civil penalty of up to $6,000 for an intentional violation of an injunction. Existing law makes a violation of these advertising provisions a misdemeanor.This bill would make it unlawful for any person to make or disseminate a false or misleading commercial disaster communication, as defined and specified. Under the bill, a potentially false or misleading communication would not be deemed false or misleading if it conspicuously features a specified disclosure statement and identifies the name and incorporation status of the person providing the goods or services. The bill would impose these requirements on a communication made on or after the date of a proclamation of a state of emergency up to 60 calendar days after the state of emergency, as specified. The bill would authorize a person harmed as a result of a violation of this provision, the Attorney General, or any district attorney, county counsel, city attorney, or city prosecutor to bring an action for a violation, as specified. The bill would additionally authorize the Insurance Commissioner and the Department of Consumer Affairs to bring an action for specified violations of this provision. The bill would impose a civil penalty of up to $2,500 for an initial violation of this provision and up to $5,000 for each subsequent violation. The bill would make the remedies and penalties created by the bill cumulative to other remedies and penalties available under existing law. The bill would specify that a violation of this provision is not a crime. Existing law generally regulates insurance and creates the Department of Insurance, headed by the Insurance Commissioner. Existing law requires the commissioner to examine the books and records of an insurer, and if the commissioner finds no outstanding liabilities to residents of this state and other specified conditions, the commissioner is required to cancel the insurer’s certificates of authority and permit the insurer to withdraw. This bill would make nonsubstantive, technical changes to these provisions.

Status
Re-referred to Com. on P. & C.P.

Bill Documents
CA AB 637 - 03/13/25 - Amended Assembly
03/13/25 - CA AB 637 (03/13/25 - Amended Assembly)