Why the increasing role of public policy in California's unfair competition law is a slippery step in the wrong direction

Authors
Citation
Jd. Taylor, Why the increasing role of public policy in California's unfair competition law is a slippery step in the wrong direction, HAST LAW J, 52(5), 2001, pp. 1131
Citations number
11
Categorie Soggetti
Law
Journal title
HASTINGS LAW JOURNAL
ISSN journal
00178322 → ACNP
Volume
52
Issue
5
Year of publication
2001
Database
ISI
SICI code
0017-8322(200107)52:5<1131:WTIROP>2.0.ZU;2-R
Abstract
California's Business and Professions Code section 17200, a.k.a. "Californi a's Unfair Competition Law," is being misapplied and abused. Specifically, members of the plaintiff's bar are beginning to regularly join a 17200 clai m to any suit that is tangentially related to unfair competition. Additiona lly, the statute is being used by private citizens as a vehicle to assert t heir own policy agendas. There are several shortcoming in section 17200 tha t allow these abuses to occur: 1) The statute has no standing requirement-a nyone may assert a suit on behalf of the general public. The plaintiff does not even have to suffer any actual injury to bring a suit. 2) The statutor y language is too broad. The statute prohibits "unlawful, unfair, and fraud ulent conduct." This second prong, "unfair" has been so broadly interpreted by courts that in a recent case, Cel-Tech Communications, Inc. v. Los Ange les Cellular Telephone Co., the California Supreme Court implicitly asserte d that a 17200 claim could be based merely upon a policy violation. The cou rt, however, did not specify which policy violations would suffice. The res ult is that private plaintiffs can bring (and in fact have brought) a 17200 claim based upon their own notions of "correct" public policy. If the Cali fornia Legislature does not act to remedy the problems with section 17200. the state could witness a trend of private plaintiffs assuming a prosecutor ial role-using 17200 as a means to enforce their own public policy agendas.