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Will California's gun law place a target on card networks?

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Will California's gun law place a target on card networks?


The California law would enable tracking of gun purchases.

George Frey/Bloomberg

The large U.S. card networks may be building a merchant code for firearm and ammunition purchases in California — a move which could draw fire from other states where conservative lawmakers have worked to block such a creation.

Visa, Mastercard and American Express are moving ahead with the transaction codes, according to CBS News, adding that these payment codes would enable the card companies to comply with a California law that would enable banks to flag suspicious gun purchases and share that information with authorities. The law goes into effect in 2025.

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The payment companies had considered this approach in the past, but halted work on the codes in March 2023 following resistance from lawmakers in conservative states. More recently, Republican state representatives in Wisconsin have introduced a bill that would ban gun-specific payment codes. Visa, Mastercard, and American Express did not provide comments by deadline. Discover, which was not named in the CBS story, also did not provide comment.  

California’s law would likely require the card networks to have different compliance policies in different states. That’s not unusual, but it does place the companies in the middle of a political fight during an election year, given California’s size and its ability to influence federal policy and laws in other states. 

“Our increasingly fraught and fractious politics are playing out at state level with hard blue states like California and red states imposing their policy preferences on our payment system,” said Eric Grover, a principal at Intrepid Ventures. “National payment systems are going to have to navigate a patchwork of conflicting state-level requirements.”

Payment networks and processors will be able to manage the differences, but it will increase the cost and complexity of running their businesses, Grover said, predicting that policymakers in liberal states such as California and New York will increase tracking and the burden on payments for firearms. “Many pro-Second Amendment red states will ban or limit such tracking,” Grover said. 

California’s law could influence policy elsewhere. 

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There has been a link between California’s early actions on consumer protection regulations and subsequent actions by other states and the Consumer Financial Protection Bureau (CFPB), according to said Stewart Watterson, a strategic advisor at Datos Insights. 

California’s Consumer Privacy Act, passed in 2018, is designed to give consumers more control over the way businesses use their data. Similar laws went into effect in Virginia, Utah and Connecticut in 2023, and in Colorado in 2021.

These laws have pressured payment processors to update policies that manage how consumer data is shared and stored, as well as improve opt-in provisions for consumers to enable data sharing. 

“Overall, California’s early actions in consumer protection have set a precedent and spurred other states and federal agencies to follow suit in enhancing consumer privacy and financial regulations,” Watterson said. 

California is also considering a bill that would affect earned wage access products, which provide early access to payroll. The bill would regulate EWA payments in a manner similar to  traditional loans. 

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California also reached an agreement with earned wage access providers in 2021 under which the companies would share data with regulators, allow examinations and set limits on pricing, sparking several other states to follow suit.

California has had an impact on both conservative and liberal issues, according to Robert Hockett, a law professor at Cornell University, noting tax reforms in California have spread to other states as well as minimum wage hikes. 

“At least as interesting as the effects upon other states in this case, as it happens, might be reactions from Congress, whose Republican members are probably already primed due to the moves in the insurance industry on guns,” Hockett said. In 2023, several jurisdictions — including San Jose — passed laws requiring gun-related insurance. 

There is the potential that California’s market size could affect other states, but on certain issues, especially hot-button issues like gun sales, California’s outsized influence may not be enough to sway other states to follow suit, said James Wester, director of cryptocurrency and cohead of payments at Javelin Strategy & Research. 

“Regulations will simply follow political fault lines,” Wester said, adding that in terms of financial and payment regulation more generally, New York tends to be more influential given its role as a banking capital. 

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Large red states have also passed laws that either aimed for a national influence or indirectly created cross-state pressure. aiming for broader influence. Texas, for example, in the past three years has passed laws that require banks to prove they do not ban gun or ammunition sellers in order to do business with the state. Texas also requires state agencies to not do business with banks that restrict the oil and gas business. 

“Regardless of which state leads on any particular issue, however, this move by California on this [gun] issue demonstrates the complexity of compliance that payment and financial services providers must deal with,” Wester said.



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Man charged with murder, kidnapping their 5-year-old child before fleeing to Mexico

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Man charged with murder, kidnapping their 5-year-old child before fleeing to Mexico


A 40-year-old Los Angeles man was charged with murder after allegedly killing his girlfriend and kidnapping their young child before fleeing to Mexico, according to authorities.

Ruben Fregosojuarez has been charged one count of murder and one misdemeanor count of child abuse under circumstance or conditions other than great bodily injury or death, according to a Los Angeles County District Attorney’s Office news release. Authorities first identified him as Ruben Fregoso but Los Angeles County prosecutors listed him as Ruben Fregosojuarez.

On Monday around 12:39 p.m., the Los Angeles Police Department conducted a welfare check in the 2600 block of South Alsace Avenue in West Adams, police said in a news release.

Officers found a woman dead inside the home “as a result of violence” and the woman’s daughter missing, police said. On Monday night, the California Highway Patrol issued an Amber Alert for the child, Daleza.

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Photos obtained by NBC4 appear to show Fregosojuarez in a parking garage in San Ysidro with the girl on Sunday. The California Highway Patrol has listed her age as 4 years old but Los Angeles police say the girl is 5. She is also described as the suspect’s daughter.

The alert said that the girl was last seen with Fregosojuarez, who allegedly abducted her in a 2019 Land Rover Discovery, on Sunday at about 4 a.m.

The CHP posted in an update that the vehicle was found but that the child and man were still missing. The girl is described as 3 feet tall, 45 pounds, and having black hair and brown eyes.



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23andMe Sued by California Over Massive 2023 Data Breach

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23andMe Sued by California Over Massive 2023 Data Breach


California’s attorney general is suing the consumer genetics testing company formerly known as 23andMe, alleging the company failed to protect customers’ sensitive personal information in a massive 2023 data breach that exposed the ancestry and genetic data of nearly 7 million people.

Attorney General Rob Bonta filed the lawsuit on Thursday in San Francisco Superior Court against Chrome Holding Co., formerly known as 23andMe, accusing the company of failing to properly investigate or respond to numerous warnings that its systems had been compromised. The company’s mail-in self-testing kits became synonymous with DNA testing before it filed for bankruptcy in 2025.

In 2023, cybercriminals breached 23andMe’s systems by using a “credential-stuffing attack,” which involves bombarding online accounts with huge sets of user names and passwords stolen in previous unrelated attacks. Over a period of months, the intruders were able to make off with the personal data of more than 6.9 million people.

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“23andMe’s security measures were so lax that the threat actor was able to operate undetected within 23andMe’s systems for over five months, and remarkably, 23andMe only began investigating after the threat actor offered the stolen user data for sale on the dark web and reached out to 23andMe to demand a ransom,” Bonta’s office said in the complaint. 

The San Francisco-based company, which allowed people to submit genetic materials and get a snapshot of their ancestry, revealed in October 2023 that hackers had accessed customer information in the prolonged data breach that targeted customers with Chinese or Ashkenazi Jewish ancestry. The stolen data of more than 1 million Asian-Pacific Islander and Ashkenazi Jewish users was later posted for sale on the dark web. 

“The sale of this data on the dark web took place amidst a period of mounting anti-Asian American and Pacific Islander and antisemitic hate and violence,” Bonta said in a press release. “This is disturbing and incredibly dangerous.”

 A January 2024 lawsuit accused the company of not doing enough to protect its customers and not notifying certain customers that their data had been targeted specifically. It later settled the lawsuit for $30 million.

23andMe representatives didn’t immediately respond to a request for comment.

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At its peak, 23andMe became the best-known name in the emerging area of DNA self-testing, with users paying upwards of $99 for kits that gave them insights into their genetic makeup, potential relatives and ancestry. But the company’s momentum slowed down in recent years after its $3.5 billion public offering in 2021.

Last July, TTAM Research Institute, a nonprofit led by Anne Wojcicki, 23andMe’s cofounder and former CEO, acquired 23andMe’s assets for $305 million.    





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Newsom signs law to shield California elections from federal interference

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Newsom signs law to shield California elections from federal interference


Gavin Newsom, California’s governor, signed legislation Wednesday that aims to shield California elections from federal interference, saying he expected Donald Trump’s administration to try to meddle in the midterms this year.

The law, which took effect immediately and came days before next Tuesday’s primary, prohibits any person – including federal agents – from accessing voter rolls or election technology without a court order. Law enforcement officers are restricted from disrupting election workers, except in public safety emergencies.

Trump administration officials so far have said they have no plans to send immigration agents to polling locations across the US, a concern raised this year by several Democratic secretaries of state. But Newsom warned “we have to be prepared for everything” because “there’s no rules any more with the Trump administration”.

Voting is already under way in California’s closely watched primary for governor, where a crowded field of Democrats and two viable Republicans are vying for just two spots on the November ballot. Under the state’s open primary system, only the top two vote-getters advance to the general election, regardless of party affiliation.

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Newsom, who cannot seek a third term, said the election law is a response to “legitimate anxiety” about Trump’s tactics, primarily in Democratic-led states, where the president has deployed federal agents over the objections of local leaders. The Democratic governor warned against underestimating someone who “doesn’t believe in free and fair elections”.

“I expect the worst with Trump because he’s done the worst,” he said at a news conference.

White House spokesperson Abigail Jackson told the Associated Press later Wednesday that Trump is committed to ensuring that Americans have full confidence in the administration of elections.

“Instead of levying false attacks at the President, Newscum should look in the mirror,” she said in a statement, using Trump’s derogatory nickname for Newsom.

In an interview last year with Vanity Fair, Susie Wiles, the White House chief of staff, knocked down the idea that Trump would deploy the military to suppress voting, saying it was “categorically false”.

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The California law also makes it a crime to knowingly take voted ballots out of the custody of election officials.

Earlier this year, the FBI under Trump seized the 2020 general election ballots from Georgia’s most populous county, which is heavily Democratic and has long been at the center of the president’s false claims that fraud cost him the race. The FBI and justice department also have sought records from previous elections in the largest counties in Arizona and Michigan.

Trump triggered a national redistricting frenzy ahead of the midterms when he urged Republicans in Texas and elsewhere to redraw their US House districts to help the party retain control of the closely divided chamber. Missouri, North Carolina, Ohio, Florida and Tennessee also have enacted new maps that could benefit Republicans, and Louisiana is expected to be next.

Republicans so far think they could gain as many as 14 seats from redistricting in November, while Democrats think they could gain six in California and Utah.



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