CFC Supports AB 2654 (Hill) – Fraudulent Solicitations
Bill Status: AB 2654 passed the Floor of the Assembly by a vote of 43 to 24, with 13 abstentions.
CFC Position: Support
The Consumer Federation of California supports AB 2654 because it would protect consumers from deceptive solicitations from non-governmental agencies posing as government fee notification letters.
This bill requires the disclosure of non-governmental status and affiliation at the top of the first page of the mailing. The requirement prevents solicitors from hiding this critical information in the ‘fine print’, which is often the practice of solicitors today. Solicitors use threats of penalties, fines, and suspension of business to deceive consumers to make payments to the organization. They have demanded up to ten times the amount of the actual government agency fine. AB 2654 would empower consumers and prevent victimization.
These protections are critical during the current economic climate when consumers need as much information as possible to make informed financial decisions. For these reasons, we strongly support AB 2654.