Starting next year, retailers in California that do not offer a “gender-neutral” section for children’s products will face a $500 fine, according to a new state law.

California Assembly Bill no. 10584, which was signed into law by Gavin Newsom, will require retailers with at least 500 employees to display childcare items and toys in a gender-neutral manner. The law defines childcare items as “any product designed or intended by the manufacturer to facilitate sleep, relaxation, or the feeding of children, or to help children with sucking or teething.” This requirement will apply to all physical stores located in the state of California.

“A retail department store that offers childcare items or toys for sale shall maintain a gender-neutral section or area, to be labeled at the discretion of the retailer, in which a reasonable selection of the items and toys for children that it sells shall be displayed, regardless of whether they have been traditionally marketed for either girls or for boys,” the bill reads.

California State Representative Evan Low, who introduced the bill, emphasized that the legislation aims to encourage businesses to move away from reinforcing “harmful and outdated stereotypes” in their product displays. The intention is to create a more inclusive shopping environment for consumers.

While some retailers voluntarily display “gender-neutral” children’s products, the legislation makes it a mandatory requirement for larger stores in California. However, concerns have been raised about potential backlash and hesitancy from retailers who fear public criticism.

Notably recent controversies, such as Target’s display of children’s clothing catering to gender-dysphoric children, have shown the significant impact public attention can have on businesses. After Target was revealed to be selling chest binders and compression tops for young girls, the company faced immense backlash and boycotts that resulted in a substantial financial loss of $9 billion in just one week.