Show California courts interpret this statute broadly so it is less restrictive. In order to prevail on a claim under the UCL, a potential Plaintiff must establish that a business practice or act is either unlawful, unfair, or fraudulent. Unlawful Business Practices To set the standard for what constitutes an “unlawful” business practice, the UCL borrows substantive law from other laws. Laws that can be used to find an unlawful business practice include statutes that are civil or criminal in nature, and can range from federal and state statutes to municipal regulations. However, where there some law that explicitly legalizes a certain business practice, a violation of that law cannot be used to find a violation of UCL Section 17200. Further, where an alleged unlawful act is based on state law, federal law can be used to defeat that claim if the requirements for federal preemption are met. Unfair Business Practices California Courts have states that an “unfair” business practice is one that offends an established public poly or when the practice is immoral, unethical, oppressive, unscrupulous or substantially injuries to consumers. Despite this broad language, no clear test has been established as to what the limitations are for “unfair” business practices. Fraudulent Business Practices Establishing that a “fraudulent” business practice has been committed under UCL Section 17200 is not subject to the same requirements as common law fraud. Rather, a Plaintiff need only show that the practice is likely to deceive members of the public. Intent is not a requirement (as it is with fraud), and mere negligence can be sufficient to establish a violation. Further, the fact that a statement is accurate is not a defense if the statement was likely to deceive. Who Can Bring These Claims (known as “standing”)? To bring an action under the UCL a potential Plaintiff must have suffered an injury in fact, and have lost money or property as a result of the unfair competition. In other words, there must be some form of economic injury in order to maintain an action. This can be met by showing that a party lost more or acquired less in a transaction than they otherwise might have. Or that a party was deprived of money or property to which they had a cognizable claim. Or, that a future or present property interest was diminished. Remedies for Violation of UCL Section 17200 The UCL authorizes equitable remedies such as injunctions and restitution. Private individuals may not recover compensatory damages outside of these equitable remedies. Accordingly, restitution under the UCL is limited to the amount received by the Defendant as a result of its unlawful, unfair or fraudulent business practices. Getting Legal Help If you are involved in a dispute concerning unlawful, unfair or fraudulent business practices, it is smart to speak with a top-rated Irvine litigation attorney. Our team of experienced business litigation attorneys and trial specialists are here to help. Contact Brown & Charbonneau, LLP today by calling 714-406-4397 to schedule your appointment or email us at . For the latest legal news, follow Brown & Charbonneau, LLP on Twitter and join us on Facebook, Instagram, and LinkedIn. Should you have any other issues involving any of the below areas of practice, please feel free to contact us.
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Brown & Charbonneau, LLP publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our “Contact Us” form, which can be found on our website at www.bc-llp.com. The mailing of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm. What is the statute of limitations for unfair competition on California?Statute of Limitations
All lawsuits for unfair competition in California must be brought within four years. Unfair business practices are subject to the same accrual and equitable exceptions to the running of the statute of limitations as any common law claims. [Cal.
How do you prove unfair competition in California?To prove a violation under the fourth definition of unfair competition, the plaintiff must show that (1) the defendant engaged in unfair, deceptive, untrue or misleading advertising and (2) the plaintiff suffered injury in fact and lost money or property. California courts have interpreted "advertising" to include ...
What is an unfair business practice in California?Unfair business practices in California include fraud and misrepresentation and deceptive acts against consumers and other businesses. These involve wrongful acts during the purchase, sale, or rental of properties, goods, and services.
Is restitution an equitable remedy California?The UCL authorizes restitution only, not damages, while the CLRA allows for both remedies. Significantly, restitution is considered an equitable remedy, although it generally results in the payment of money.
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Business and professions code 17200 statute of limitations
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