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Legal Memorandum: CA Business and Professions Code Violations

Issue: Do plaintiff’s properly allege a violation of California Business and Professions Code 17500?

Area of Law: Business Organizations & Contracts, Ethics & Professional Responsibility
Keywords: Allegation of violation; California Business and Professions Code
Jurisdiction: California
Cited Cases: 93 Cal. Rptr. 2d 439; 104 Cal. App. 4th 845; 128 Cal. Rptr. 2d 389; 78 Cal. App. 4th 1144
Cited Statutes: Cal. Bus. & Prof. Code § 17500
Date: 01/01/2007

            The California Business and Professions Code defines “unfair competition” to include “any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising.”  Cal. Bus. & Prof. Code § 17200 (2006).

            Cal. Bus. & Prof. Code § 17500 provides:

                               It is unlawful for any person, firm, corporation or association, or any employee thereof with intent directly or indirectly to . . . perform services, professional or otherwise, or anything of any nature whatsoever or to induce the public to enter into any obligation relating thereto, to make or disseminate or cause to be made or disseminated before the public in this state, or to make or disseminate or cause to be made or disseminated from this state before the public in any state, in any newspaper or other publication, or any advertising device, or by public outcry or proclamation, or in any other manner or means whatever, including over the Internet, any statement, concerning . . . those services, professional or otherwise, or concerning any circumstance or matter of fact connected with the proposed performance or disposition thereof, which is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading, or for any person, firm, or corporation to so make or disseminate or cause to be so made or disseminated any such statement as part of a plan or scheme with the intent not to sell . . . those services, professional or otherwise, . . . as so […]

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