On March 28, 2026, California's Governor announced new regulations aimed at protecting consumers in the state when it comes to contracts. The regulations, which were developed in conjunction with the California Department of Consumer Affairs, aim to ensure that consumers are fully informed about their rights and the terms of any contracts they enter into.One of the key components of the new regulations is the requirement for businesses to provide consumers with a written summary of the key terms of any contract before it is signed. This summary must be written in plain language and clearly outline the consumer's rights and obligations under the contract. Additionally, businesses will be required to provide consumers with a copy of the entire contract upon request.The regulations also require businesses to disclose any fees or charges associated with a contract up front, including any cancellation fees or penalties. This is intended to prevent consumers from being surprised by hidden fees or charges after they have already signed a contract.In addition to these consumer protections, the new regulations also aim to crack down on predatory business practices that take advantage of consumers. For example, businesses will be prohibited from including clauses in contracts that restrict a consumer's ability to take legal action in the event of a dispute. This is seen as a major win for consumer rights advocates, who have long argued that such clauses effectively prevent consumers from seeking recourse in the event that they are wronged by a business.Overall, the new regulations represent a major step forward in protecting consumers in California. By requiring businesses to be more transparent and upfront about the terms of their contracts, the state hopes to empower consumers to make informed decisions and protect themselves from unscrupulous business practices.