March 20, 2026
AB 1776 (Aguiar-Curry) would grant the state Attorney General broad authority to open investigations into any company, of any size, for virtually any reason. The bill also includes a private right of action that would allow unions, competitors and other third parties to bring lawsuits against businesses. This could lead to scenarios where neighboring businesses, such as grocery stores or competing entities, sue one another over alleged market dominance.
The scope of this bill would effectively upends more than a century of established federal antitrust precedent, creating a new and uncertain legal framework that businesses would be forced to navigate without clear guidance. In practice, companies may not even know what standards they are expected to comply with, creating significant legal ambiguity.
From a cost perspective, businesses of all sizes could face thousands if not tens of thousands of dollars in additional expenses related to legal compliance, litigation and staffing. The bill also raises broader economic concerns by expanding liability so dramatically, it could discourage common business practices such as customer loyalty programs or incentives that benefit consumers, like airline miles or hotel rewards. It risks prioritizing litigation over innovation and investment, ultimately putting consumers last.
A helpful analogy compared this to changing the speed limit without telling drivers and then issuing tickets for noncompliance. That level of uncertainty is what businesses could be facing under AB 1776. Overall, this is one of the most comprehensive and potentially disruptive proposals in the antitrust space, with far reaching implications for California’s economy and competitiveness.
For these reasons, OCBC opposes AB 1776.
Please reach out to Amanda Walsh, Vice President of Government Affairs for more information.
