Ninth Circuit Limits Monetary Recovery In False Advertising Class Actions

On June 18, 2018, the Ninth Circuit held that monetary relief under California's consumer protection statutes is limited to the difference between the price the consumer paid and the fair market value of the item received (price/value differential).¹ This is a significant decision that will make it more difficult for plaintiffs to avoid summary judgment or obtain class certification in false advertising cases in California.

The Facts in Chowning

Plaintiff, who was seeking to certify a class of California consumers, claimed that Kohl's advertised goods at "sale" prices that were heavily discounted from the "regular" or "original" prices, and that these "regular" or "original" prices were fictitious. She claimed that she relied on these alleged fictitious prices to buy merchandise she would not have bought otherwise. On the basis of these allegations, she sued under California's consumer protection statutes (the Unfair Competition Law, the False Advertising Law,