CALIFORNIA’S NEW ENFORCEMENT AGENCY: IMPLICATIONS FOR REGULATED INDUSTRIES
On 1 July 2026, California launched the Business and Consumer Services Agency (BCSA), a new cabinet-level body created by Gavin Newsom, governor of California, to centralise state consumer-facing regulation as federal enforcement capacity has declined.
The new agency seeks to coordinate seven departments and boards overseeing financial services (FS), consumer protection, real estate, cannabis and alcoholic beverages. The launch marks California’s most significant regulatory reorganisation in more than a decade, with a mandate to provide more assertive consumer protection.
The new structure enables faster, more strategic and more coordinated action against businesses that serve California consumers, including nationwide companies that reach them through digital commerce. The BCSA’s influence may also extend beyond California.
The appointment of Rohit Chopra, one of the most well-known advocates for consumer protection, as inaugural secretary underscores the extent of California’s significant regulatory ambitions. As director of the Consumer Financial Protection Bureau (CFPB) from 2021 to 2025, he oversaw nearly $10bn in refunds and penalties, including more than £6bn returned to consumers.
Earlier, as a Federal Trade Commission (FTC) member, he pressed for stronger antitrust enforcement, closer scrutiny of repeat offenders and greater accountability for large technology companies. He later led the Consumer Protection and Affordability Working Group of the Democratic Attorneys General Association.
His appointment signals California’s intent to apply a federal-calibre enforcement philosophy through state regulators.
Structure and scope of the new agency
The newly-formed BCSA coordinates the Department of Financial Protection and Innovation (DFPI), Department of Consumer Affairs (DCA), Department of Real Estate (DRE), Department of Alcoholic Beverage Control and its appeals board, Department of Cannabis Control and its appeals panel, and California Horse Racing Board.
Oct-Dec 2026 issue
Willkie Farr & Gallagher LLP