RED TAPE ALERT – OPPOSE AB 1018

The California Legislature is considering AB 1018, a bill that would impose costly and complex new rules on any business that uses automated tools to make decisions, tools that help us serve customers faster, manage operations more efficiently, and stay competitive in a high-cost state.

This bill may sound technical, but the reality is simple: it would hurt small businesses, increase prices, and slow down the use of technology that consumers and companies rely on every day.

WHAT IT DOES: AB 1018 creates new rules for businesses that use any kind of automated decision-making, tools that help process online orders, recommend products, manage inventory, or customize services for customers. Under this bill, businesses would have to explain how every decision is made, give customers the right to opt out, and let them file appeals, no matter the size or scope of the decision.

WHAT IT CHANGES: Currently, businesses are allowed to use technology to improve speed, accuracy, and customer satisfaction without needing government approval for every step. AB 1018 would change that. It would force companies to do detailed “impact assessments” (like a report card that businesses will have to budget for) before using automated tools, and to spend time and money managing new compliance systems, appeals, and staff training.

WHY IT MATTERS: This bill would drive up costs for small businesses already struggling to survive in California’s expensive economy. It could force businesses to abandon helpful tools, raise prices for customers, delay innovation, and even stop hiring.

WHO DECIDES: The Assembly Judiciary Committee is voting on this bill next Tuesday, July 1st and they need to hear from small business owners, workers, and advocates right now.