California Proposition 64 (2004)
Encyclopedia
Proposition 64 was a California ballot proposition
on the November 2, 2004 ballot. It passed with 6,571,694 (59.0%) votes in favor and 4,578,725 (41.0%) against. It was an initiative
statute that limited the California law
on unfair competition
, restricting private lawsuit
s against a company only to those where an individual is actually injured by and suffers a financial loss due to an unfair, unlawful, or fraud
ulent business practice and providing that otherwise only public prosecutor
s may file lawsuits charging unfair business practices.
Proponents argued that the measure would limit "frivolous lawsuits" against companies, which they claimed result mainly in a windfall for lawyers rather than consumers. Proponents also argued that businesses ultimately must pass along their costs in the form of higher prices to consumers.
Opponents charged that the proposition was heavily funded by businesses who wanted to weaken consumer rights by limiting Californians' ability to enforce environmental, public health, and consumer protection laws such as 1986's Proposition 65
.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:
California ballot proposition
In California, a ballot proposition is a proposed law that is submitted to the electorate for approval in a direct vote . It may take the form of a constitutional amendment or an ordinary statute. A ballot proposition may be proposed by the State Legislature or by a petition signed by members of...
on the November 2, 2004 ballot. It passed with 6,571,694 (59.0%) votes in favor and 4,578,725 (41.0%) against. It was an initiative
Initiative
In political science, an initiative is a means by which a petition signed by a certain minimum number of registered voters can force a public vote...
statute that limited the California law
California law
California law consists of several levels, including constitutional, statutory, and regulatory law, as well as case law.-Constitutional law:...
on unfair competition
Unfair competition
Unfair competition in a sense means that the competitors compete on unequal terms, because favourable or disadvantageous conditions are applied to some competitors but not to others; or that the actions of some competitors actively harm the position of others with respect to their ability to...
, restricting private lawsuit
Lawsuit
A lawsuit or "suit in law" is a civil action brought in a court of law in which a plaintiff, a party who claims to have incurred loss as a result of a defendant's actions, demands a legal or equitable remedy. The defendant is required to respond to the plaintiff's complaint...
s against a company only to those where an individual is actually injured by and suffers a financial loss due to an unfair, unlawful, or fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
ulent business practice and providing that otherwise only public prosecutor
Prosecutor
The prosecutor is the chief legal representative of the prosecution in countries with either the common law adversarial system, or the civil law inquisitorial system...
s may file lawsuits charging unfair business practices.
Proponents argued that the measure would limit "frivolous lawsuits" against companies, which they claimed result mainly in a windfall for lawyers rather than consumers. Proponents also argued that businesses ultimately must pass along their costs in the form of higher prices to consumers.
Opponents charged that the proposition was heavily funded by businesses who wanted to weaken consumer rights by limiting Californians' ability to enforce environmental, public health, and consumer protection laws such as 1986's Proposition 65
California Proposition 65 (1986)
Proposition 65 is a California law passed by direct voter initiative in 1986 by a 63%-37% margin...
.
Official summary
- Limits individual's right to sue by allowing private enforcement of unfair business competition laws only if that individual was actually injured by, and suffered financial/property loss because of, an unfair business practice.
- Requires private representative claims to comply with procedural requirements applicable to class action lawsuits.
- Authorizes only the California Attorney General or local government prosecutors to sue on behalf of general public to enforce unfair business competition laws.
- Limits use of monetary penalties recovered by Attorney General or local government prosecutors to enforcement of consumer protection laws.
Summary of Legislative Analyst's Estimate of Net State and Local Government Fiscal Impact:
- Unknown state costs or savings depending on whether the measure significantly increases or decreases court workload related to unfair competition lawsuits and the extent to which funds diverted by this measure are replaced.
- Unknown potential costs to local governments depending on the extent to which funds diverted by this measure are replaced.