SACRAMENTO, CA – Senator Melissa Hurtado (D-Bakersfield) today expressed her deep disappointment after the California Assembly Appropriations Committee failed to advance Senate Bill 697. This bill aims to enhance sentencing and penalties for those found guilty of wrongdoing under the Cartwright Act. The bill proposed increasing corporate fines up to $100 million and individual fines to $1 million with possibility of a 10-year imprisonment.  As part of Senator Hurtado’s broader anti-corruption legislative package, SB 697 stood as a crucial measure in her ongoing efforts to combat anti-competitive practices that undermine California’s economy and consumer confidence. This legislative effort aligned with Vice President Kamala Harris' economic agenda to lower grocery costs, tackle inflation, and protect consumers from being unfairly exploited by large corporations as announced today.

SB 697 was designed to empower California’s Attorney General to investigate and penalize corporations engaging in unjustified price increases on essential goods. The bill sought to ensure that California stood firm against illegal corporate practices that run up excessive profits at the expense of consumers.

“I am deeply disappointed that SB 697 did not advance in the Assembly Appropriations Committee,” said Senator Hurtado. “This bill was a critical component of our efforts to protect California consumers from the harmful effects of corporate greed, especially in the food and grocery sectors. The fight against inflation and corporate price-gouging remains a top priority for me. Vice President Harris’ economic agenda includes a comprehensive plan to lower grocery costs and address inflation, which remains a pressing concern for many Americans. Her proposal calls for setting strict rules to ensure corporations cannot exploit consumers for excessive profits through illegal business practices in the food and grocery industries. Additionally, it seeks to grant the Federal Trade Commission (FTC) and state attorneys general new authority to investigate and impose significant penalties on corporations that break these rules.

“Vice President Harris’ plan is a vital step toward addressing the economic challenges that millions of Americans face every day,” continued Senator Hurtado. “While SB 697 did not move forward, I remain committed to aligning California’s policies with this national effort. We cannot allow big corporations to exploit our communities during these challenging times, and I will continue to fight for fairness, justice, and accountability in our markets.”

Senator Hurtado acknowledged the strong support from consumer rights advocates, community organizations, and constituents who rallied behind SB 697, and vowed to explore all available avenues to protect Californians from unfair market practices.

“SB 697 will give California the tools it needs to stand up to these unfair practices, ensuring that no family has to choose between putting food on the table and paying other bills.” – Senator Hurtado

Senator Melissa Hurtado is Chair of the Senate Committee on Agriculture and currently represents the 16th Senate District in the California Legislature, which includes portions of Fresno, Tulare, Kings and Kern Counties. Website of Senator Melissa Hurtado https://sd16.senate.ca.gov/

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