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Certification as a class can enable litigation to proceed more expeditiously and cost-effectively, particularly in cases against large corporations. Because they lower the cost of legal claims, class actions may provide the only means for some plaintiffs to pursue their cases.
California’s antitrust laws are primarily governed by the Cartwright Act and the Unfair Competition Law. These laws are designed to protect trade and commerce from unlawful restraints, monopolies, and unfair practices, and they serve a similar purpose to the federal antitrust laws found in the Sherman Act, the Clayton Act, and the Federal Trade Commission Act. However, California’s laws can provide broader protection and remedies in some cases.
The Cartwright Act (Sections 16700-16770 of the California Business and Professions Code) specifically targets anticompetitive practices by prohibiting agreements among competitors to fix prices, rig bids, or create monopolies. It is broader in scope than its federal counterparts in that it applies not just to interstate commerce but also to purely intrastate commerce, affecting all forms of business within California. Victims of anticompetitive practices under the Cartwright Act can sue for treble damages (three times the actual damages) and attorney’s fees.
The Unfair Competition Law, found in Sections 17200-17210 of the California Business and Professions Code, is broader than the Cartwright Act. It prohibits any unlawful, unfair, or fraudulent business act or practice, as well as unfair, deceptive, untrue, or misleading advertising. The UCL’s definitions of unfair competition are deliberately broad, covering anything that can be deemed unfair or deceptive business practices. Unlike the Cartwright Act, the UCL allows for injunctions and civil penalties but not for damages.
Both the California Attorney General and private parties can enforce these laws. While the Attorney General can seek injunctive relief, civil penalties, and restitution on behalf of the public, private parties often seek injunctive relief, restitution, and damages, including treble damages under the Cartwright Act for antitrust violations.
These laws reflect California’s commitment to maintaining a competitive marketplace and protecting consumers and businesses from anticompetitive practices. They are crucial tools for regulating the conduct of businesses within the state, providing remedies that go beyond those available under federal law.
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