The new California Business and Consumer Services Agency (BCSA), launched on July 1, 2026, will focus on improper practices that drive costs up for state residents, agency Secretary Rohit Chopra said, in a recent blog post.

“A key priority for the agency is to crack down on harmful and corrupt practices that wrongfully raise costs for families and honest businesses,” Chopra wrote.

He said that families across the country are feeling squeezed by higher prices, fees, and other costs. “To add insult to injury, federal regulators and law enforcement are turning a blind eye to illegal upcharges that we all pay the price for,” according to Chopra.

California Governor Gavin Newsom tapped Chopra, the Biden Administration’s CFPB Director, to be the first Secretary of the new agency. At the CFPB, Chopra was known for being a strict and activist regulator. The Trump Administration has reversed many of Chopra’s rules and guidance documents, however.

Newsom created the new Cabinet-level agency last year. Chopra’s nomination is subject to state Senate confirmation, but he may serve until he is confirmed.

“As the Trump administration turns its back on consumers, we need strong and fearless leaders to keep protecting Californians,” Newsom said, in explaining his choice of Chopra. “Rohit Chopra has shown exactly that kind of leadership — taking bold action, standing up for working families, and enforcing real consumer protections.”  

In his blog post, Chopra said the agency’s goal is to ensure that companies are upfront and honest about product features. “We also want people to have meaningful choices about who they do business with, rather than getting tricked or trapped into paying inflated fees and charges for a product or service they do not want,” he said.

Chopra said that state agencies within his department have the authority to bring enforcement actions against companies that illegally overcharge consumers and endanger the public.

“In some circumstances, our departments can bring actions against entities that violate federal law, not just state law,” he wrote. Businesses risk losing a license to operate in the State of California, he added.

Chopra said his agency will be especially attuned to corrupt practices, including undisclosed kickbacks and manipulative schemes. “We will also pay close attention to individuals and companies who have been able to evade accountability under federal law through political connections and favoritism,” he wrote.

Chopra said that while many federal agencies are cutting back consumer protection efforts, the California department will work with other states to step up scrutiny of potentially unlawful practices. Chopra’s focus on junk fees carries over from his time as CFPB Director in which the CFPB, and the Biden Administration in general, moved to address what they perceived as abusive fee practices that they referred to as “junk fees.” We reported on the efforts extensively, including here and here.

Chopra finished his comments by outlining how the new department will focus its priorities.

“To aid our enforcement efforts, we will be focusing audit and inspection resources on the entities that pose the greatest risks, rather than smaller firms that present little or no risk to consumers,” he wrote. “In addition, the agency will be working on a number of initiatives to improve the ways that consumers, businesses, and whistleblowers can file complaints and provide law enforcement tips to our departments.”

The new agency, the BCSA, includes the Department of Alcoholic Beverage Control (ABC), Alcoholic Beverage Control Appeals Board (ABC AB), Department of Cannabis Control (DCC), Cannabis Control Appeals Panel (CCAP), California Horse Racing Board (CHRB), Department of Consumer Affairs (DCA), Department of Real Estate (DRE), and the Department of Financial Protection and Innovation (DFPI).