California’s Unfair Competition Law (UCL)

California’s Unfair Competition Law (UCL)

It’s important that businesses engage in business and commerce fairly and honestly. Unfortunately, not all businesses adhere to these standards. Far too often, dishonest and unfair business practices lead to consumers making choices they wouldn’t otherwise. However, there is recourse available for consumers under California’s Unfair Competition Law. Consumers can take advantage of the benefits offered under this law with the help of a California Unfair Competition Law attorney.

What Is California’s Unfair Competition Law?

California’s Unfair Competition Law (UCL) provides protection for consumers and businesses against businesses that participate in business practices that are deceptive, fraudulent, unfair, or unlawful. Such actions are harmful to individuals, other businesses, and California’s economy.

Dishonest practices are often an attempt to lure customers into purchasing from a business. The consumers are taken advantage of because they may have chosen to act differently if they weren’t deceived. Furthermore, honest businesses could lose out to businesses participating in unfair competition. California’s economy thrives from fair competition between companies competing to offer consumers products and services that meet their needs.

The UCL is a means of addressing these practices and a deterrent for those who may consider them. The law applies to every business that operates in the state of California, even if their headquarters is elsewhere. According to the law, unfair competition consists of:

• Unlawful, unfair, or fraudulent business practices or actions
• Untrue, unfair, misleading, or deceptive advertising

Unlawful Business Practices

Any violation of a state or federal law could be considered a violation of the UCL. It does not need to be a repeated action, but it must occur at least once. However, it may be necessary to demonstrate that there was an intent on the part of the defendant to destroy their competition through unlawful practices.

Unfair Business Practices

Generally, there are two kinds of unfair business practices recognized under the UCL. One category describes when another competitor is undermined by the actions and practices of a company. The other category is consumer-oriented and occurs when a company offers a good or product that harms consumers.

Fraudulent Business Practices

When a consumer suffers an economic loss because the business deceived or misled them, this could be grounds for a UCL claim.

Advertising Disallowed Under the UCL

Deceptive, false, or misleading advertising may violate the UCL. These types of advertising are often attempts by businesses to attract consumers with something they either lack the capacity to offer or never plan to offer. Some examples of advertising that violates the UCL include:

• Bait-and-switch advertising
• Infringing on intellectual property
• Fake endorsements
• Robocalls
• Price manipulation
• False reference pricing

What Can a California’s Unfair Competition Law Attorney Do?

A California UCL attorney can offer a wide range of help related to UCL claims, beginning with a consultation and an analysis of your potential claim. They can help identify if violations of the law occurred in your case. Even if a UCL violation didn’t occur, it’s possible that a violation of another law may be identified. An attorney can help determine whether or not there is strong merit for a claim.

An attorney can also represent clients during UCL negotiations and possible litigation. At Shay Legal APC, our lawyers have a strong understanding of consumer law, as well as substantial experience representing and advocating for victims of unfair business practices. We use our extensive knowledge to put forth a strong case for our clients that may result in a fairly negotiated settlement or be litigated in court.

FAQs

Q: What Is the Statute of Limitations on UCL Claims?

A: In general, you have four years from the time of a violation of the UCL to file a claim. However, it’s possible that you may not realize the violation occurred until some time afterward. If that’s the case, the statute of limitations could be four years from the point that the violation was discovered.

There is, though, a reasonable person standard that applies to later discovery. The court may assess whether a person exercising reasonable diligence could have recognized the violation and its financial impact sooner. The statute of limitations may then start whenever the court assesses that point to have been.

Q: What Compensation Is Available in a UCL Claim?

A: Generally, under a UCL claim, there are two things on which a court may rule. One is an injunction for the defendant in the case to cease the behavior in question. The second is economic damages, which means compensating any loss that the plaintiff suffered. Punitive damages are not included in UCL claims.

Q: What Is Strict Liability Related to the UCL?

A: Strict liability is an important concept in UCL claims. It means the defendant is not able to argue that they were unaware that their actions were in violation of the law. Intent is irrelevant to whether or not the claim will be upheld. Another defense that won’t be considered valid is that the actions weren’t technically unlawful. A violation can include actions that are technically lawful but are considered “unfair.” Additionally, the accuracy of something like an advertising claim may not be a valid defense, as something can still be misleading even if technically true.

Q: Who Can File a UCL Claim?

A: UCL claims can be filed by a variety of different parties. One of the primary sources of these claims is individuals or groups of individuals who were harmed by the actions and practices of a business. Additionally, competing businesses that have suffered harm as a result may also file a claim. Beyond these entities, it may also be possible for public prosecutors and private representatives to bring claims in certain situations.

Get Help for Your Claim From an Experienced California’s UCL Attorney

If you believe you may have suffered an economic loss due to a UCL violation, a California Unfair Competition Law Attorney from Shay Legal APC may be able to help. We’ve represented thousands of consumers and are passionate about protecting our clients’ consumers rights. We believe in holding companies accountable for harmful violations. Contact us today to discuss your UCL claim.