The Unfair Practices Act prohibits price discrimination in California. The Act is California's local equivalent to the federal Robinson-Patman Act. Under the act, any business practice that causes price discrimination and limits competition is illegal.
Business Practices Forbidden under the Unfair Practices Act Include:
- Selling a product or service below the seller¿s cost, which sellers may do in order to drive their competition out of business
- Charging different prices for the same product or service in different areas - this practice is known as locality discrimination
- Payments of rebates or commissions to specific customers, if it has the effect of limited competition or injuring competitors
What Are the Penalties for Violating California's Unfair Practices Act?
Any state court in California has the power to grant injunctive relief, or an order requiring the violator to stop the illegal activity. Violators of the Unfair Practices Act also can face fines as high as $2,500 per violation.
Do I Need a Lawyer for my Unfair Practices Act Problem?
Antitrust and Unfair Competition law is a very complicated area of the law. An experienced business lawyer can help guide you through the legal process and make sure all of your rights are protected.