California Court Severely Limits Some Consumer Class Actions

California Second District Court of Appeal severely limits consumer class actions based upon alleged unfair, unlawful or deceptive business practices under Business & Professions Code section 17200 et seq. and alleged false advertising under Business and Professions Code section 17500 et seq.

For years, Business & Professions Code sections 17200 et seq., known as the Unfair Competition Law ("UCL"), and 17500 et seq., known as the False Advertising Law ("FAL") were the darlings of the plaintiffs' bar because they allowed certain relief against businesses based solely on a showing that a particular business practice was "likely" to deceive consumers. No proof of actual deception, causation or injury was required. Moreover, any person, whether or not a victim of the challenged conduct, had "standing" to bring an action seeking relief on behalf of the "general public" and could do so without the certification of a class action and without even meeting the requirements normally