California's Unfair Competition Act enumerates several business practices that are considered unfair trade practices and therefore illegal. These illegal practices include:
- False, misleading, or unfair advertising
- Unlawful business acts or practices
- Unfair business acts or practices
- Fraudulent business acts or practices
What Are the Penalties for Violating California's Unfair Competition Act?
Violations of the Unfair Competition Act are prosecuted by the California attorney general, but private attorneys may also bring suits for alleged violations of the Act. If the attorney general prosecutes a violation, the violator will a fine of $2500 for each violation.
If a private party alleges a violation of the Unfair Competion Act, the only remedies available to that party are injunctive relief and restitution. Injunctive relief is a court order requiring the violator to stop the unlawful business practice. Restitution is a form of damages where the court orders a violator to return the money it made through its unlawful practice to the victims who were treated unfairly.