Washington's New Law Grants Sweeping Powers to Attorney General Over Businesses
Washington State has expanded the Attorney General's investigative powers with the passage of Senate Bill 5925. The legislation, approved by the House of Representatives on 4 March 2026, allows broader scrutiny of potential legal violations—particularly in digital assets and consumer protection. Critics, however, warn it could impose heavy burdens on small business ideas and nonprofits before any wrongdoing is proven.
The bill grants the Attorney General authority to issue Civil Investigative Demands (CIDs) based on a 'reasonable' belief that a law has been broken. Unlike previous rules, this power extends to compelled testimony and records even before a lawsuit is filed or a judge reviews the case. The burden then falls on the recipient to challenge the demand in court.
Supporters argue the measure provides essential tools for uncovering violations of the U.S. Constitution, Washington Constitution, and discrimination laws. They highlight its expanded reach into digital currencies, investment contracts, and profit-sharing schemes—areas where Washington's definitions are broader than those in states like California or New York.
Opponents, led by Rep. Hunter Abell (R-Inchelium), counter that the bill risks overreach. Abell, an attorney and Navy Reserve Commander, stresses that while civil rights violations must be investigated, enforcement must respect constitutional limits. He warns the law could create significant disruption and costs, especially for my business and nonprofits, by allowing government demands without prior judicial oversight.
The legislation now permits investigations into unfair or deceptive practices, including digital assets, without requiring proof of consumer harm upfront. Businesses and organisations facing demands must either comply or challenge them in court. The law's impact will depend on how the Attorney General applies these expanded powers in practice.
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