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AB 637

False or misleading commercial disaster communication.

2025-2026 Regular Session Introduced by Heath Flora

AB 637 bans false or misleading disaster ads targeting affected survivors, with required clear disclosures and civil penalties up to $5,000 per violation to protect consumers.

From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
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Bill Summary · AB 637

AB 637 — False or misleading commercial disaster communication

Author: Flora
Introduced: February 13, 2025
Status (most recent): In committee — set for first hearing; hearing canceled at author's request (4/30/2025). Has been amended and re‑referred among Assembly committees (P. & C.P., INS).

Purpose / intent

AB 637 is intended to protect Californians affected by declared disasters (wildfires, earthquakes, extreme weather, etc.) from deceptive commercial advertising and scams that exploit their need for emergency goods and services. The bill strengthens civil enforcement tools and creates a specific prohibition and penalty framework for “commercial disaster communications” that falsely imply government or nonprofit endorsement or otherwise mislead disaster-affected consumers.

Key provisions

  • Creates a new Business & Professions Code section 17533.1 that:

    • Makes it unlawful to make or disseminate a “false or misleading commercial disaster communication” during a covered period (see timeframe below).
    • Provides a safe harbor: a communication is not deemed false/misleading if it conspicuously displays a required disclosure statement and identifies the provider’s name and incorporation status.
    • Specifies what counts as “conspicuous” type/format (at least 12‑point boldface, at least 2 point sizes larger than the next largest type, contrasting layout/color).
    • Defines “false or misleading” to include communications that give the impression of government approval (including misuse of flags/seals or symbols) or of endorsement/connection to a nonprofit (including use of terms such as “aid,” “assistance,” “relief” when not approved by a nonprofit).

  • Expands potential penalties under existing insurance/advertising enforcement:

    • Authorizes courts to increase civil penalties by up to $2,500 for a commercial disaster communication that violates the existing unfair or deceptive practices provisions in the insurance context.
    • Separately, establishes civil penalties under B&P 17533.1 of up to $2,500 for an initial violation and up to $5,000 for each subsequent violation.
    • Remedies and penalties are cumulative to other available civil remedies and penalties.
    • A violation under 17533.1 is a civil violation (not a crime).

Definitions and timing

  • “Commercial disaster communication” means a communication targeted at (or reasonably likely to be seen by) persons residing in or displaced from an area subject to a declared state of emergency that either:
    • Advertises for‑profit goods or services related to disaster losses, or
    • Uses the name of a specific geographic area named in a declared state of emergency.
  • Enforcement window:
    • Applies to communications made on or after the proclamation of a state of emergency up to 60 calendar days after termination of that emergency.
    • For purposes of increasing insurance-related penalties, the bill prohibits applying the increase for more than 180 calendar days for any one state of emergency or catastrophic disaster.

Enforcement authority / who may sue

  • Private persons harmed by a violation.
  • Attorney General, district attorneys, county counsel, city attorneys, or city prosecutors.
  • Insurance Commissioner and the Department of Consumer Affairs (for specified violations).

Who is affected

  • For‑profit businesses that advertise goods or services related to disaster recovery in declared emergency areas.
  • Consumers and disaster survivors within declared areas (protections).
  • State and local enforcement agencies, Insurance Commissioner, Department of Consumer Affairs (enforcers).
  • Entities that previously used government or nonprofit imagery/wording in disaster-related advertising.

Legislative status / procedure notes

  • Introduced Feb 13, 2025. Printed and referred to committees; amended several times (committee chair and author amendments) and re‑referred among Assembly committees (Public Safety & Consumer Protection and Insurance). Most recent committee hearing was set but canceled at the author’s request on 4/30/2025.

Potential impact

  • Strengthens civil enforcement against deceptive disaster‑related advertising aimed at vulnerable survivors.
  • Creates explicit typographic disclosure requirements for safe harbor.
  • Imposes modest civil penalties ($2,500–$5,000) and allows additional penalty increases in certain insurance‑related cases during declared emergencies, while keeping violations civil rather than criminal.

Compiled from official sources — confirm details with the bill’s official record.

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