AB 2863: Bill to protect consumers could cripple small businesses and newspapers

OPINION (CBM) – As the President and CEO of the largest Black non-profit organization advocating for hundreds of small and emerging businesses, I hear from entrepreneurs who are struggling to navigate the complexities of running a business every day. They grapple with escalating costs, ever-growing regulatory hurdles, and numerous daily operational challenges. These issues make it increasingly difficult for small businesses to thrive and succeed in today’s competitive landscape. As these businesses work through their daily challenges, AB 2863 is making its way through the legislature. AB 2863 aims to protect consumers by adding additional restrictions on how businesses offer auto-renewal subscription services. While consumer protection is important, the bill’s unintended consequences could devastate small businesses and local newspapers that rely heavily on recurring subscriptions for their revenue. All sorts of black-owned Businesses utilize automatic renewal for the convenience of their customers, & for example, those offering specialty beauty products, gourmet food items, and even community-based newspapers. The impact on local news, particularly in underserved areas, would be particularly devastating. These newspapers, already struggling, need the stability of an ongoing subscriber base to continue investing in and serving their communities. One such example is the Sacramento Observer. Since 1962, the...