Attorney General Bonta’s Sponsored Bill to Bolster California Antitrust Law, Keep California’s Economy Vibrant, Signed into Law

SACRAMENTO - California Attorney General Rob Bonta and Senator Melissa Hurtado (D-Bakersfield) today issued the following statements in response to Governor Gavin Newsom signing into law Senate Bill 763 (SB 763), legislation seeking to more effectively deter corporations from restraining trade, fixing prices, and reducing competition - actions that can raise prices and harm workers, businesses, and consumers.

"This week, California took action and increased penalties for wealthy corporations looking to illegally profit at the expense of workers, consumers, and honest businesses," said Attorney General Rob Bonta. "As the fourth largest economy in the world, and home to some of the wealthiest corporations, California knows that a fair and competitive marketplace should work to benefit everyone, not just a select few. I thank Senator Hurtado for authoring this law to help ensure we have the appropriate tools to keep and protect California's vibrant economy - for everyone."

"There was a time when I, and too many people I love, felt abused by a system rigged against us. It's not easy to forget what it felt like to watch my best friend struggle to buy baby formula. I feel a similar pain today as countless others do because the system is increasingly stacked against too many people. Senate Bill 763 will hold those responsible for that suffering accountable. And it's about damn time," saidSenator Melissa Hurtado. "I'm deeply grateful to Attorney General Bonta and his incredible team for standing with us in this fight because this is how we start building an economy where no one is left behind."

SB 763 will increase criminal penalties and add civil penalties under California's Cartwright Act, which prohibits agreements between corporations that restrain trade, limit production, and fix prices or otherwise prevent competition. The existing penalties for violations of the Cartwright Act have not been updated in decades and are insufficient to deter anticompetitive activity in the current market.

Specifically, SB 763 will:

• Increase the criminal fines for corporate violators from $1 million to $6 million per violation.
• Increase the criminal fines for individuals from $250,000 to $1 million per violation.
• Add civil penalties of up to $1 million per violation that courts can impose based on factors such as the nature, seriousness, and persistence of the misconduct.

ANTITRUST AND YOU:

Antitrust enforcement is an essential component of a healthy economy. Competitive marketplaces established through antitrust vigilance help consumers by ensuring fair prices for goods and services, an array of products to choose from, quality goods and services, and the steady introduction of innovative new products. As part of the Attorney General's commitment to enforce antitrust laws, the California Department of Justice has just launched its new Antitrust Complaint Form! Please click here to report anticompetitive conduct that potentially violates the antitrust laws.