PROPOSITION 64

Business and Professions Code sections 17200 et seq. is a series of statutes prohibiting unlawful, unfair, or deceptive business practices. Although the Legislature did not name this law, our courts have given it several names. The most popular seems to be the California Unfair Competition Law (UCL). It has been called a borrowing statute, because it treats a practice prohibited by any other law as an unfair business practice.

Originally, the UCL permitted actions to be brought by a public prosecutor or any person acting for the interests of itself, its members or the general public. Cases held that a person suing under the UCL did not have to show any actual injury. On November 2, 2004, the voters passed Proposition 64, which amended B&PC sections 17203, 17204, and 17535. The amendments became effective the following day. As amended, the UCL now permits enforcement actions to be brought only by a public prosecutor, or a private person who has suffered injury in fact and has lost money or property as a result of the unfair competition. A private person can sue on behalf of others only if it meets that requirement and satisfies the requirements for a class action.

The following cases have addressed application of the amendments.

CALIFORNIANS v MERVYN'S 39 C4 223
BRANICK v DOWNEY 39 C4 235
PFIZER v SUPERIOR COURT 141 CA4 290
FOUNDATION v NEXTEL 143 CA4 131
MEYER v SPRINT 150 CA4 1136
SCHULZ v NEOVI 152 CA4 86
McADAMS v MONIER 151 CA4 667
ARIAS v SUPERIOR COURT 153 CA4 777
BENSON v KWIKSET 152 CA4 1254
O'BRIEN v CAMISASCA 161 CA4 388
HARPER v 24 HOUR FITNESS 167 CA4 966
JOHNSON v GLAXOSMITHKLINE 166 CA4 1497
BLANKS v SEYFARTH SHAW 171 CA4 336
CITIZENS OF HUMANITY v COSTCO 171 CA4 1
MEYER v SPRINT 45 C4 634
TROYK v FARMERS 171 CA4 1305
IN RE TOBACCO II CASES 46 C4 298

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