The California Legislature was especially busy this past year in the consumer markets space, enacting several key pieces of legislation aimed at addressing concerns over the environment and consumer protection. These include:

Climate Corporate Data Accountability Act​ (SB 253)

  • Requires companies doing business in California with annual worldwide revenue over USD 1B to submit annual reports on greenhouse gas emissions. The California Air Resources Board is directed to develop implementing regulations by January 2, 2025, with reporting set to begin January 1, 2026.

Climate-related risk disclosures (SB 261)

  • Requires companies doing business in California with annual worldwide revenue over USD 500M to prepare a risk report disclosing climate-related financial risk and setting out measures the company will take to reduce and adapt to such risks.
  • First reports are due by January 1, 2026.

Disclosures regarding voluntary carbon offsets, net zero and carbon neutrality claims​ (AB 1305)

  • Requires any entity making net zero, carbon neutral or emission reduction claims in California to publish on their website certain information, including documentation on how the claim is substantiated.
  • If the entity purchases or uses voluntary carbon offsets, it must also disclose specified detailed information on the offsets.
  • Requires any entity marketing or selling voluntary carbon offsets within the state to publish certain data on its website detailing its carbon offset project(s).

Right to Repair Act (SB 244)

  • Requires manufacturers to make the following available to owners of most electronic appliances or products: service and repair facilities; sufficient documentation, parts and tools to maintain and repair a product.
  • Duration of availability depends on the cost of the product: if an item has a whole sale price of US$50 but under US$100, then three years from manufacture; if an item is US$100 or more, then for at least seven years after manufacture.
  • Effective July 1, 2024.

Expansion of ban on chemicals in cosmetics (AB 496)

  • Expands the existing list of intentionally added ingredients prohibited in cosmetics. This law adds 26 chemicals to the list. Prohibits manufacture, ​sale or delivery of cosmetics containing any chemical found on the list as an intentionally added ingredient.
  • Effective January 1, 2027.

California Food Safety Act (AB 418)

  • Prohibits the manufacture, sale, distribution or delivery of food products containing certain food additives commonly used in popular candies, snacks and drinks, including brominated vegetable oil and red dye 3.
  • Effective January 1, 2027.

Amendment to Home Furnishings and Thermal Insulation Act (AB 1059)

  • Expands flame retardant ban in adult mattresses to include components other than foam.
  • Effective January 1, 2027.

Fire protection: Tents—nonflammable materials (AB 267)

  • Prohibits the manufacture and sale of any tent designed and intended for use for occupancy by less than 15 persons unless the tent is made from flame-retardant fabrics. A tent that is constructed with fabric entirely from synthetic fibers is classified as being made from flame-retardant fabrics or materials.
  • Contains several exceptions, including tents designed or manufactured for children’s play, camping, backpacking or mountaineering.