Attorneys Have Their Hands Full with Consumer Complaint Boom

Lawsuits against businesses based on consumer complaints surged last year and continue to grow in 2025

Class-action settlements alone hit nearly $40 billion in 2024, marking the third consecutive, record-setting year in the category. Private TCPA (Telephone Consumer Protection Act) claims have also exploded: Filings in January 2025 soared 268% year over year, with first-half TCPA class actions rising 44% from 2024. Meanwhile, the Consumer Financial Protection Bureau (CFPB) complaint database – a proxy for consumer dissatisfaction – registered over 1.29 million complaints in Q1 2025, a 169% increase from Q1 2024.

California courtrooms are as busy as anywhere with such cases. And the complaints come from a diverse array of categories, many of which are clearly a sign of the times.

This year, California Attorney General Rob Bonta released the “Top 10 Consumer Complaints” and highlighted ongoing efforts to protect California consumers. The list included the top consumer complaint categories the California Department of Justice (DOJ) has received in the last calendar year.

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“California is a pillar of strong state consumer protection laws and an outspoken advocate for robust federal protections,” said Bonta. “Whether protecting our kids online, stopping egregious bank fees or cracking down on illegal price gouging, as the People’s Attorney, I am committed to going to the mat for California consumers.”

The Attorney General’s Top 10 Consumer Complaint Categories Over the Past Year:

1. Social Media Platforms
2. Online Retailers
3. Banks and Financial Services
4. Contractors
5. Landlord/Tenant Issues
6. Online Scams
7. Debt Collection
8. Credit Reporting
9. Telephonic Scams
10. Brick and Mortar Retail Sales

California’s 2025 surge in consumer lawsuits and complaints is a trend that’s being felt most acutely in Los Angeles. Whether it’s misleading advertising, hidden fees, data breaches, labor violations or deceptive pricing practices, consumers across the state are increasingly turning to the courts to assert their rights. The result is a new and more litigious landscape for businesses, especially those in consumer-facing industries, like retail, tech, automotive and hospitality.

This uptick is not without context. California has long been home to some of the strongest consumer protection laws in the country, including the California Consumer Privacy Act (CCPA) and the Unfair Competition Law (UCL). But in 2025, three forces appear to be fueling this litigation surge.

First, there’s the continued evolution of consumer rights awareness. Californians are more informed and tech-savvy than ever. The widespread availability of information about their legal rights, combined with high-profile class actions splashed across headlines and social media, has created a climate where consumers are not just willing but eager to challenge perceived corporate misbehavior.

Second, new regulations and state-level legislation – including expanded protections under the California Privacy Rights Act (CPRA) – have created a legal framework that both empowers plaintiffs and broadens the definitions of violations. For example, companies that mishandle or sell consumer data without consent are increasingly being held accountable in court, even for relatively minor infractions.

Third, the rise of plaintiff-friendly legal technology has lowered the barrier to entry for filing lawsuits. Platforms that streamline class action recruitment, litigation funding firms that take on financial risk and AI-assisted legal tools have all contributed to a system in which consumers feel emboldened and lawyers feel equipped to take on more cases.

Indeed, consumer financial litigation is clearly on the rise. In May of 2025, for example, filings jumped across the board – Fair Credit Reporting Act (FCRA) cases were up 10.1% compared to the previous month; Fair Debt Collection Practices Act (FDCPA) cases were up 15.5%; and Consumer Financial Protection Bureau (CFPB) complaints were up 8.8% – with year-to-date increases of 12.6% for FCRA cases and a near doubling (97.6%) in CFPB complaints compared to the same period in 2024.

TCPA (telephone marketing) cases more than doubled year-over-year, with 507 class actions in Q1 2025, up 112% from Q1 2024. January alone was up 260%, according to the National Law Review.

Los Angeles, as California’s commercial and cultural capital, has become a flashpoint for this activity. In one high-profile 2025 case, a group of L.A. consumers filed a class action suit against a popular meal delivery app, alleging that the company used deceptive pricing, adding hidden fees during checkout that were not disclosed up front. Though the company denied wrongdoing, the suit sparked wider scrutiny of pricing transparency across the industry and led several other platforms to quietly update their fee disclosure practices.

In another L.A.-based case, a tech startup that marketed a line of “smart” home security devices was sued for failing to adequately protect user data. Plaintiffs alleged that poor cybersecurity practices led to a breach that exposed thousands of customers’ personal information, including home addresses and video footage from interior cameras. The lawsuit not only drew national attention but also triggered an investigation by the California Attorney General’s office.

Even brick-and-mortar businesses aren’t immune. Several Los Angeles-based gyms and wellness centers are now facing lawsuits over misleading membership practices, including unauthorized renewals and hidden cancellation fees, issues that have become more common as consumers re-evaluate subscription services post-pandemic.

This growing tide of consumer litigation has caught many businesses off guard. Some are calling for reforms to prevent abuse of the system, particularly in cases where statutory damages can lead to large payouts even when actual consumer harm is minimal. Others argue that the system is working as intended: shining a spotlight on companies that cut corners, violate consumer trust or exploit legal gray areas.

Ultimately, the rise in lawsuits may signal a broader cultural shift in California, a rejection of opaque business practices and a demand for greater transparency, fairness and respect for consumer rights. For companies operating in the state, particularly in cities like Los Angeles, this is not a moment to retreat behind legal firewalls. It is a time to assess compliance policies, ensure ethical customer treatment and recognize that accountability is no longer optional – it’s expected.

As California continues to set the tone for consumer protection nationally, the experiences of businesses in L.A. today may well become the blueprint for how companies across the country adapt to a more empowered and litigious customer base tomorrow.