Abuse of California’s Unfair Competition Law - 17200
Read more about 17200
Media Clips
California employers and California jobs are
being threatened by legalized extortion. California’s Unfair
Competition Law, (Business & Professions Code Section 17200) was
enacted decades ago to protect consumers and business from companies
that misled consumers. However, loopholes in the law have led to
widespread abuse by personal injury lawyers who can file a suit
without having to identify a customer or competitor who was misled
by the product or service.
California is the only state that has this type of law. Even
California State Supreme Court Justice Janice Brown has called the
UCL "a means of generating attorneys' fees without any corresponding
public benefit.”
Under this law:
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Personal injury lawyers can act as district
attorneys and sue companies “on behalf” of the general public.
They don’t need clients or evidence of harm. There are no
victims, no plaintiffs and no actual damages. It amounts to
nothing more than state-sanctioned extortion.
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The personal injury lawyers get to determine
what is “unfair." Businesses large and small become targets of
lawsuits for even minor violations such as a paperwork error or
incorrect font size.
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For just one small filing fee,
lawyers can file lawsuits against thousands of small businesses in
California collectively, even though the cases are in no way
related to one another.
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Small and minority-owned businesses, such as
restaurants, auto shops and nail salons, are a favorite target.
Last year the Trevor Law Firm sent thousands of letters to
minority-owned businesses threatening to file Unfair Competition
Lawsuits unless the small businesses paid the law firm thousands
of dollars in “settlement fees.” One California auto shop was
actually sued for not having a date on an invoice.
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When threatened with these suits, businesses
have no choice but to settle, as it would cost more to defend the
lawsuit in court. In fact, the provisions of this law create a
tool by which a settlement can be extracted simply by filing a
lawsuit or sending a threatening letter.
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There is no protection for a company once an
initial unfair competition suit has been filed and settled -
another lawsuit may be filed on exactly the same issue.
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Consumers and workers are the real victims of these abusive suits.
Every consumer who now has to pay more for a tune up or for their
favorite dish at a local restaurant is a victim of these suits, as
businesses raise the prices to cover the cost of settling these
suits.
The abuse of this law is out of control.
The legislature had a chance to pass real reform to end the abuse
last year. But they didn’t. Instead the power and money of the
personal injury lawyers killed real reform leaving only legislation
that would have encouraged even more lawsuits.
On March 2, voters in our area will choose
among several candidates looking to represent small business owners
and consumers. Which of them will support efforts to reform this
law?
Ask Them!
Tom Pico (D): 510-754-5524
www.picoforassembly.com
Alberto Torrico (D): 510-793-2258
www.votetorrico.com
Henry C. Manayan (D): 408-275-8580
www.manayanforassembly.com
Dennis Hayashi (D): 510-889-9045 (no Web site as of 2/9)
Ash Bhatt (D): 510-445-0131
www.ashbhatt.org
Cliff Williams (R): (no phone, Web or email as of 2/9) No
opponents in Republican Primary. |
