Consumer Law

California?s Proposition 64: The Best Law Money Can Buy!

By Andy Hoffman

In 2004, bankrolled by $18 million from big oil, drug, and insurance companies (among numerous deep-pocketed others), California?s Proposition 64 passed by a comfortable margin.  The law, which limits citizens? rights to file lawsuits under California?s Unfair Competition Law (UCL), was ironically billed as helping ?mom-and-pop? businesses avoid ?shakedown lawsuits.? But as many predicted, it?s only helped fill the coffers of big corporations?at consumers? expense.

Prior to Prop. 64, a consumer or environmental group could file a lawsuit on the public?s behalf to stop some egregious corporate practice.  So, for example, in 1990, when Safeway was fudging the expiration dates on old meat to dupe unsuspecting customers into buying it, a consumer group was able to sue and force it to stop.  If the same scenario were to play out today, post Prop. 64, only those already poisoned by the rotten meat could sue. 

But in addition to environmental and consumer groups, even customers? rights were taken away.  That?s why the California Supreme Court recently tossed out a suit brought by some Sprint Spectrum customers who said the company forced them into an unfair service arrangement including binding arbitration and other unfair burdens.

Thanks in large part to Prop. 64, the Court ruled that these customers hadn?t suffered an ?actual injury? so there was nothing they could do to challenge their service contract.  Meanwhile, Sprint, with the enthusiastic backing of the U.S. Chamber of Commerce, no doubt headed to a nearby bar to celebrate what a terrific bargain Prop. 64 has turned out to be.

Full post as published by ThePopTort on February 02, 2009 (boomark / email).