California Proposition 64 (2004)
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- This article is about the 2004 state proposition. For the 1986 initiative, see California Proposition 64 (1986).
Proposition 64 was a proposition in the state of California 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 limits California's Unfair Competition Law. It limits private lawsuits against a company only to those where an individual is actually injured by and suffers a financial loss due to an unfair, unlawful, or fraudulent business practice. Otherwise, only public prosecutors may file lawsuits charging unfair business practices.
Proponents argued that the measure would limit frivolous lawsuits against companies that result mainly in a windfall for lawyers rather than consumers and 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 California Proposition 65 (1986).
See also: List of California ballot propositions 2000-present
[edit] 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.
