Unfair Competition and Business Practice Attorney
Consumer Legal Remedies Act (CLRA)
The Consumer Legal Remedies Act (CLRA) was passed in California to protect consumers from unfair and deceptive practices that may occur during the sale or lease of goods and or/services.
- Under CLRA, the term “goods” refers to tangible items that are primarily used for personal, family or household purposes. And, the term “services” refers to work, labor and all types of services other than those that are provided for commercial or business use.
- CLRA defines a “consumer” as any individual who purchases or leases or wants to purchase or lease goods or services for personal, family or household purposes. The CLRA is designed to protect only consumers that are California residents.
- The CLRA does not apply to the issuance of credit cards, transactions involving real property, insurance contracts, or advertising mediums such as newspapers or television stations unless it is established that they had notice of the proscribed conduct.
Unfair or Deceptive Conduct Must Have Caused Some Type Of Damage
In order to have a claim under the CLRA, a consumer must have sustained some kind of damage due to the unfair or deceptive practice. The prima facie case requires the consumer to establish, among other things, causation and damages. In other words, “in order to bring a CLRA action, not only must a consumer be exposed to an unlawful practice, but some kind of damage must result.” Meyer v. Sprint Spectrum L.P. (2009) 45 Cal.4th at 634.
However, the damages need not be pecuniary in nature. This element is satisfied if the unlawful practice resulted in “some kind of tangible increased cost or burden to the consumer” such as transaction costs “associated with the formation and maintenance of economic relationships, including the costs of enforcing contracts” or loss of opportunity to consummate a business transaction elsewhere.