Lawmakers face a defining choice this month: protect California consumers from price increases or wipe out the discounts millions of families already rely on.

SACRAMENTO, CA – California lawmakers return to the Capitol this week facing a simple but consequential question: can they protect consumers from paying higher prices while preserving the discounts millions of Californians use every day?

As the Legislature enters its final four weeks of session, Californians for Consumer Affordability is calling on lawmakers to reject AB 2564, warning the bill could unintentionally eliminate many of the everyday discounts and savings Californians voluntarily sign up to receive.

With the high cost of living in California already straining household budgets, the coalition says AB 2564 would create legal uncertainty so significant that many businesses could simply stop offering discounts rather than risk costly litigation.

The bottom line: retailers will still sell the same products. Consumers will lose the discounts.

That’s the unintended consequence of AB 2564 – it doesn’t lower the price of groceries, school supplies or other everyday goods. It makes it legally risky for retailers to keep offering the savings that help Californians afford everyday essentials.

Common Ground, Different Bill

“Our coalition supports prohibiting businesses from using a consumer’s personal information to charge a higher price. That’s not the debate,” said Rachel Michelin, spokesperson for Californians for Consumer Affordability and President/CEO of the California Retailers Association. “The debate is whether California should eliminate the discounts millions of Californians voluntarily sign up to receive. We can protect consumers from price increases without taking away the discounts they rely on to stretch their household budgets.”

Why the Bill’s “Fixes” Fall Short

Even the bill’s broadest carve-outs won’t necessarily protect every discount program even its own supporters say they want to preserve. Under the current language, businesses can’t always tell in advance whether a loyalty perk, member discount, or targeted savings offer for groups like students, teachers, first responders, or military families will qualify for protection or will expose the business to a lawsuit.

That uncertainty carries real consequences. When businesses can’t be confident a discount is lawful, they don’t take the risk and they eliminate the discount instead. The result is a law that could end up trimming away exactly the kinds of group-based savings programs even backers of the bill say they want to protect.

A Better Path Forward

California has a chance to lead the nation by proving that strong consumer protections and consumer savings can coexist, they don’t have to be traded off against each other.

The coalition repeatedly offered amendments that would crack down on price increases while keeping discount and rewards programs intact, and those proposals were rejected. AB 2564 is not the right policy for California.

Lawmakers should not lock in a law before understanding its full impact on consumers.

Once businesses pull back discounts and rewards programs due to legal uncertainty, those programs rarely come back, even with future clean-up legislation. California gets one chance to get this right before it becomes law.

“Our coalition stands ready to begin that work tomorrow,” Michelin said. “California consumers deserve a law that protects them without taking away the discounts and reward programs they voluntarily choose to receive. But AB 2564 isn’t that law. Vote no on AB 2564 today, then let’s come together and get this right.”

Who Loses If This Bill Passes

“As lawmakers cast their votes over the next four weeks, we’re asking them to think about who’s standing on the other side of the checkout counter,” Michelin said.

• The college student buying textbooks and dorm essentials.
• The teacher buying classroom supplies with her own money.
• The working parent grabbing snacks for the weekend soccer tournament.
• The first responder who counts on discounts to purchase the essential items they need to protect our communities.

“They won’t know they’ve lost their discount until they’re standing at the register,” Michelin said.

“Retailers will still sell the same products. The only thing that disappears is the discount. These are savings Californians choose for themselves and rely on. The Legislature shouldn’t take them away.”

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About Californians for Consumer Affordability

Californians for Consumer Affordability, led by the California Retailers Association, is a coalition of retailers, grocers, restaurants, consumer brands, technology companies, trade associations, and other organizations committed to protecting affordability, consumer choice, and access to discounts while supporting strong consumer protections. To learn more about the campaign, visit ProtectMyDiscounts.com.