[1] In California, one such statute is the Unfair Competition Law ("UCL"), Business and Professions Code §§ 17200 et seq.
The UCL "borrows heavily from section 5 of the Federal Trade Commission Act" but has developed its own body of case law.
[5] In Raladam, the Court held that a FTC Act Section 5 violation must show actual injury to competition.
[9] In 1962, a California appellate court reiterated this rule by stating that the UCL extended "equitable relief to situations beyond the scope of purely business competition.
[11] In 2004, California voters enacted Proposition 64, which limited UCL standing to individuals who suffered financial/property loss because of an unfair business practice.
[13] Prior to Proposition 64, any consumer, regardless of whether they were adversely affected by unfair business acts, could bring a UCL action.
[14] In addition, any consumer could act as a representative and file a class action lawsuit against a business committing unfair competition.
[23] California courts have interpreted "advertising" to include almost any statement made in connection with the sale of goods or services.
[24] For example, Chern v. Bank of America held that a loan officer's statement over the phone about interest rates was "advertising".
To further complicate matters, the courts are split on whether "omissions of material facts" that mislead or confuse the public violate the UCL.
[30] In many cases, liquidators which are hired to sell merchandise from a closing store will actually raise the prices on items that were already marked-down on clearance.
Both of these were proven to be the case in November 2008, with the same liquidator (Hilco) committing both offenses: the markups at Linens 'n Things, and the higher prices on around one-third of the items compared to other Circuit City stores remaining open.
Additionally, liquidators refuse to accept returns, so if a customer does find he or she has been overcharged, there is no apparent recourse.
Plaintiffs suing under Sections 17200 or 17500 often also assert violations of the California Consumers Legal Remedies Act (CLRA), set forth in Cal.
[35] The CLRA protects consumers against 23 specific activities that it defines as unfair and deceptive business practices.
[44] For example, in competitor-vs.-competitor lawsuits, the defendant may assert unclean hands if it believes the plaintiff has engaged in serious misconduct that relates to the subject of relief being sought.