California is preparing to take a more aggressive approach to consumer protection and business oversight with Gov. Gavin Newsom announcing plans to appoint former Consumer Financial Protection Bureau Director Rohit Chopra to lead the state’s newly created Business and Consumer Services Agency.
The appointment comes as California positions itself as a counterweight to what state leaders describe as a rollback of federal consumer protection efforts under the Trump administration. Newsom said Chopra’s appointment is intended to strengthen California’s efforts to crack down on junk fees, corporate misconduct, privacy concerns, and unfair business practices.
The new Business and Consumer Services Agency officially launches July 1 and is part of a broader state government restructuring that splits California’s existing Business, Consumer Services and Housing Agency into two separate entities. The other new entity will focus on housing and homelessness.
For companies operating in financial services, collections, lending, and fintech, the biggest detail may be that the new agency will oversee the California Department of Financial Protection and Innovation, California’s primary financial regulator. The agency will also oversee multiple consumer-facing departments and licensing bodies.
Chopra led the CFPB from 2021 through early 2025 and became one of the most aggressive federal regulators targeting what he viewed as abusive financial practices. During his tenure, the CFPB pursued actions involving junk fees, buy now pay later products, digital payments, consumer data practices, and algorithmic lending models. California officials highlighted that the CFPB recovered nearly $10 billion in refunds and penalties during Chopra’s leadership.
Industry participants are likely to pay close attention to how California’s enforcement posture evolves under Chopra’s leadership. The new structure gives Chopra broad authority to help coordinate enforcement priorities across agencies while overseeing departments involved in financial services, real estate, cannabis regulation, and consumer affairs.
California’s consumer protection framework already mirrors several CFPB priorities championed by Chopra, including restrictions on abusive practices and increased scrutiny of fintech and digital financial products.
Newsom framed the move as part of California’s effort to continue expanding consumer protections even as federal oversight shifts direction.
“As the Trump administration turns its back on consumers, we need strong and fearless leaders to keep protecting Californians,” Newsom said in a statement announcing the appointment.
