Overview
In California, plaintiffs' lawyers and state and local prosecutors wield two powerful tools: the Unfair Competition Law (UCL) and the Consumers Legal Remedies Act (CLRA). The UCL forbids "unlawful, unfair or fraudulent" conduct in connection with virtually any type of business activity. With its sweeping liability standards and broad equitable remedies, the UCL is often the weapon of choice for plaintiffs' lawyers and is almost uniformly invoked by prosecutors in consumer cases. The CLRA is more defined in structure, but no less potent. The CLRA applies to any "consumer" transaction involving the "sale or lease of goods or services" and authorizes recovery of actual, statutory and punitive damages. While the UCL broadly prohibits any "unfair" practice, CLRA liability depends upon proof of a violation of one of its expressly stated prohibitions, organized into thirty main categories. The CLRA also provides for streamlined class certification proceedings and restrictions on dispositive motion practice.
On the enforcement front, the 2024 elections have already led to major changes in federal agency priorities (and staff availability to pursue cases) with respect to many issues, including consumer protection. With federal enforcement in retreat, consumer protection enforcement activity at the state level can be expected to rise to fill the void. In light of California's long track record of vigorous consumer protection via the UCL and CLRA, we expect 2025 to be exceptionally busy in this area.
