Unfair competition can arise in a variety of forms, including unlawful statements contained in newspaper or periodical advertisements, radio or TV commercials, direct mail pieces, advertising or sales brochures, catalogs, price lists, and sales talk. Unfair competition claim settlement cases offer many plaintiffs a quicker and more effective way to pursue their grievances. Under California’s unfair competition laws, private attorneys could file lawsuits against businesses alleging any sort of possibly unfair competition practice, without demonstrating that a single person had been injured by the practice.  Additionally, these plaintiffs have been allowed to sue on behalf of the general public, seeking what they characterize as almost limitless restitution and, more importantly, attorney’s fees.  Unfortunately, settlement was often unsuccessful, because it would not prevent another plaintiff from filing another lawsuit alleging the same unfair business practice.  

    In an unfair competition claim settlement case, any plaintiff must demonstrate that he or she was actually damaged by the alleged unfair competition practice. This new requirement is meant to eliminate lawsuits against practices that harm nobody. In order to sue a business under the unfair competition law, a lawyer must actually find a client who has been injured by the business.

    Although unfair competition claim settlement carry significant advantages for the plaintiffs, plaintiffs’ counsel often notes that the law also has its limitations. Unfair competition claim settlement claims are equitable in nature and, thus, do not result in a jury trial. Also, unfair competition claim settlement does not carry the legal remedy of damages, whether compensatory or punitive. However, although unfair competition claim settlement does not authorize the recovery of actual or punitive damages, injunctive and restitutionary remedies are available. Restitution is the only non punitive unfair competition claim settlement relief available under the Unfair Business Practices Act. As described in section 17203: "Any person performing or proposing to perform an act of unfair competition within this state may be enjoined in any court of competent jurisdiction. The court may make such orders or judgments, including the appointment of a receiver, as may be necessary to prevent the use or employment by any person of any practice which constitutes unfair competition, as defined in this chapter, or as may be necessary to restore to any person in interest any money or property, real or personal, which may have been acquired by means of such unfair competition."

    The general purpose of restitution under the unfair competition statutes is to deter future violations of the unfair trade practice statute and to foreclose retention by the violator of its ill gotten gains. Thus, when filing an unfair competition claim settlement it is wise to consult a lawyer to protect your rights, win your case and get the settlement due to you.