ARTICLE
29 December 2025

California Retail Regulatory Update: Key Changes Taking Effect In 2026 And Beyond

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Rogers Joseph O'Donnell

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The new year brings new laws impacting retailers, manufacturers, and distributors in the state. What follows is a summary of laws going into effect in 2026, as well as a summary of laws passed in 2025...
United States California Food, Drugs, Healthcare, Life Sciences
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The new year brings new laws impacting retailers, manufacturers, and distributors in the state. What follows is a summary of laws going into effect in 2026, as well as a summary of laws passed in 2025 that will impact retailers in the coming years. We encourage those in the retail industry to familiarize themselves with these developments.

Laws Going Into Effect in 2026

SB 1053: Ban on Plastic Carryout Bags

Effective January 1, 2026, retailers are prohibited from distributing or selling plastic carryout bags and are only allowed to distribute recycled paper bags. The ban does not apply to bags provided to customers prior to the point of sale that are designed to contain an unwrapped food item or protect a purchased item.

SB 22: Increasing Level at Which Gift Certificates Can Be Redeemed for Cash

Existing law provides that gift certificates with a value of less than $10 can be redeemed for their cash value. Effective April 1, 2026, SB 22 increases the redeemability limit to $15 and expands the definition of "gift certificate" to include electronic gift cards.

AB 660: Food Date Labeling Reform

Starting July 1, 2026, AB 660 bans the use of "sell by" dates on food items. Instead, food manufacturers, processors, and retailers responsible for the labeling of food items who choose or are required by law to display a date label communicating the quality or safety of food must label the food item as follows:

  1. "BEST if Used by" or "BEST if Used or Frozen by" when indicating the quality date of the food item; or
  2. "USE by" or "USE by or Freeze by" when indicating the safety date of the food item.

Laws Enacted in 2025

SB 646: Heavy Metal Testing for Prenatal Vitamins

This year, the California Legislature passed a bill requiring testing and public disclosure of the presence of heavy metals in prenatal multivitamins. Starting January 1, 2027, a manufacturer or brand owner who manufactures prenatal multivitamins sold, manufactured, delivered, or offered for sale in California must test a representative sample of each lot of their prenatal multivitamin product for arsenic, cadmium, lead, and mercury. Brand owners of prenatal multivitamins must disclose the name and level of each heavy metal present in each lot tested on their webpage and provide a link to the test results. The prenatal multivitamins must also include the following statement on the outermost package starting January 1, 2027: "For information about heavy metal testing on this product, visit" followed by the webpage where the information regarding the heavy metal testing is posted. SB 646 bans the sale of prenatal vitamins that fail to comply with these requirements.

AB 60: Ban on Sale of Cosmetic Products Containing Certain Musk Ingredients

Existing California law bans the use of certain intentionally added ingredients in cosmetic products. AB 60 expands that list to include nitro musk ingredients. Beginning January 1, 2027, AB 60 prohibits the manufacture, sale, and distribution of cosmetic products that contain intentionally added Musk Ambrette, Musk Tibetene, Musk Moskene, and Musk Xylene. Also effective January 1, 2027, the bill prohibits the manufacture, sale, and distribution of cosmetic products that contain more than 1.4% of Musk Ketone in fine fragrance products; 0.56% of Musk Ketone in eau de toilette; 0% Musk Ketone in oral products; and 0.042% Musk Ketone in all other products.

SB 236: Ban on Sale of Hair Relaxers Containing Certain Intentionally Added Ingredients

SB 236 prohibits the manufacture, sale, and distribution of hair relaxer products (defined as a cosmetic product designed to permanently straighten curly, coiled or tightly coiled hair) that contain any of the following intentionally added ingredients: Formaldehyde; Isobutylparaben; Isopropylparaben; Cyclohexylamine; Cyclotetrasiloxane; Diethanolamine Perfluorooctane Sulfonate; Dibutyl Phthalate; Diethylhexyl Phthalate; and Lily Aldehyde. The bill provides the Department of Toxic Substances and Control ("DTSC") until January 1, 2030 to implement regulations to interpret and enforce these provisions. The bill authorizes the DTSC to seek a penalty of no less than $10,000 for each violation and allows the Attorney General to bring a civil action to enforce these provisions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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