-- Last revised 01/03/24 --
Unfair Competition - Study B-700
This recommendation proposes revisions in the unfair competition law (Business and Professions Code Section 17200 et seq.) to limit the potential for abuse and to help ensure that the interests of the general public are adequately represented. The proposal focuses on the need to provide a degree of finality in representative actions to avoid repetitive claims on behalf of the general public and improve the settlement process. The proposal also imposes certain formalities that should inhibit the use of claims on behalf of the general public to increase leverage in disputes between business entities. Under the proposed revisions:
- A plaintiff seeking to represent the general public would have to be
an adequate representative of the interest of the general public pled
and meet basic conflict of interest standards.
- The plaintiff's attorney would have to be an adequate legal
representative of the interests of the general public pled in the
action.
- Notice of commencement of a private representative action, and
notice of proposed terms of a judgment, would be given to the Attorney
General and district attorney. Notice of the proposed terms of the
judgment would also be given to parties in other similar cases against
the defendant.
- A fairness hearing would be held to make sure that the judgment in a
private representative action is "fair, reasonable, and adequate" to
protect the interests of the general public. Interested persons would be
permitted to appear and comment on the proposed terms.
- The determination of a private representative claim on behalf of the
general public would bar any further private representative claims on
that cause of action. Any right to sue for individual claims would not
be affected by this rule.
- Prosecutors would be given a degree of procedural priority over
private plaintiffs in representing the public. The right of the private
plaintiff to attorney's fees is recognized in cases where a private
plaintiff contributes to a prosecutor's action.
Related Material
Legislation
-
1997: Senate Bill 143 (Kopp) -- Bill information at Legislative Counsel's website
Not enacted.
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Final Recommendation
- Recommendation & Study -- Unfair Competition Litigation (includes Background Study by Professor Robert C. Fellmeth) (11/15/96)
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Tentative Recommendations and Other Requests for Comment
- Tentative Rec. -- Unfair Competition Litigation (May 1996)
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Staff Memoranda
- Memo 97-44 -- SB 143: Unfair Competition Litigation (6/6/97)
- Memo 97-22 -- SB 143 -- Unfair Competition Litigation (4/8/97)
- Memo 96-88, Supp. 2 -- Legislative Program; Unfair Competition Litigation (Comments of Prof. Fellmeth and CAJ) (12/11/96)
- Memo 96-88, Supp. 1 -- Legislative Program; Unfair Competition Litigation (State Bar Litigation Section Comments) (12/9/96)
- Memo 96-88 -- Legislative Program; Unfair Competition Litigation (CDAA Comments) (12/6/96)
- Memo 96-74, Supp. 1 -- Unfair Competition Litigation: Final Recommendation Draft (Additional Revisions) (11/13/96)
- Memo 96-74 -- Unfair Competition Litigation: Final Recommendation Draft (11/5/96)
- Memo 96-67, Supp. 1 -- Unfair Competition Litigation: Comments on Tentative Recommendation (Attorney General Letter) (10/7/96)
- Memo 96-67 -- Unfair Competition Litigation: Comments on Tentative Recommendation (10/2/96)
- Memo 96-30, Supp. 1 -- Unfair Competition (Mansfield comments) (5/8/96)
- Memo 96-30 -- Unfair Competition: Revised Draft of Tentative Recommendation (4/29/96)
- Memo 96-23, Supp. 1 -- Unfair Competition (Mansfield Comments) (4/10/96)
- Memo 96-23 -- Unfair Competition: Revised Draft of Tentative Recommendation (3/22/96)
- Memo 96-11, Supp. 1 -- Unfair Competition: Revised Draft (Comments of CDAA) (2/20/96)
- Memo 96-18 -- Unfair Competition: Statute of Limitations (2/14/96)
- Memo 96-11 -- Unfair Competition: Revised Draft (2/9/96)
- Memo 96-3, Supp. 3 -- Unfair Competition: Status of Study (Comments from David Roe, Environmental Defense Fund) (1/18/96)
- Memo 96-3, Supp. 2 -- Unfair Competition: Status of Study (Comments from Coalition of Manufacturers for the Responsible Administration of Proposition 65) (1/16/96)
- Memo 96-3, Supp. 1 -- Unfair Competition: Status of Study (Additional Comments from Prof. Fellmeth) (1/11/96)
- Memo 96-3 -- Unfair Competition: Status of Study (1/9/96)
- Memo 95-57, Supp. 1 -- Unfair Competition: Draft of Tentative Recommendation (Comments from Interested Persons) (11/1/95)
- Memo 95-57 -- Unfair Competition: Revised Draft of Tentative Recommendation (10/24/95)
- Memo 95-43, Supp. 3 -- Unfair Competition: Draft of Tentative Recommendation (Comments from CDAA and others) (9/27/95)
- Memo 95-43, Supp. 2 -- Unfair Competition: Draft of Tentative Recommendation (Comments from Consumers Union) (9/25/95)
- Memo 95-43, Supp. 1 -- Unfair Competition: Draft of Tentative Recommendation (Explanatory Text) (9/19/95)
- Memo 95-43 -- Unfair Competition: Draft of Tentative Recommendation (Statute) (9/8/95)
- Memo 95-32 -- Unfair Competition: Issues and Alternatives (6/22/95)
- Memo 95-35 -- Unfair Competition: Constitutional Limits on Binding Absent Parties (6/21/95)
- Memo 95-14, Supp. 2 -- Unfair Competition: Consultant's Recommendations (Comments of Consumers Union) (3/29/95)
- Memo 95-14, Supp. 1 -- Unfair Competition: Consultant's Recommendations (3/22/95)
- Memo 95-14 -- Unfair Competition: Consultant's Recommendations (3/13/95)
- Memo 95-6 -- Unfair Competition: Initial Policy Considerations (Professor Fellmeth's Background Study) (1/23/95)