The Unfair Practices Act (UPA) is codified at Business & Professions Code sections 17000, et seq. The purpose of the UPA “is to safeguard the public against the creation or perpetuation of monopolies and to foster and encourage competition, by prohibiting unfair, dishonest, deceptive, destructive, fraudulent and discriminatory practices by which fair and honest competition is destroyed or prevented.” (Bus. & Prof. Code § 17001.)

It prohibits specific “practices which the legislature has determined constitute unfair trade practices.” (Wholesale T. Dealers v. National etc. Co., 11 Cal.2d 639, 643.) “This chapter shall be liberally construed that its beneficial purposes may be subserved.” (Bus. & Prof. Code § 17002.)

A complaint under the Unfair Practices Act must state facts supporting the statutory elements of the alleged violation. (See G.H.I.I. v. MTS (1983) 147 Cal.App.3d 256, (allegations of secret rebates, locality discrimination, sale below cost, and loss leaders; complaint was sufficient); Khoury v. Maly’s of Calif. (1993) 14 Cal.App.4th 612, 619 (demurrer properly sustained where complaint identified no particular statutory section that was violated and failed to describe with reasonable particularity facts supporting violation).)

"It is unlawful for any manufacturer, wholesaler, distributor, jobber, contractor, broker, retailer, or other vendor, or any agent of any such person, jointly to participate or collude with any other such person in the violation of this chapter." (Bus. & Prof. Code § 17048).

Remedies

The consequences of violating the Unfair Practices Act can be quite severe.

A prevailing plaintiff may receive treble damages and attorney fees. (Bus. & Prof. Code § 17082).

The act even provides criminal sanctions. Any person who violates the act is guilty of a misdemeanor punishable by up to a $1,000 fine and six months' imprisonment. (Bus. & Prof. Code § 17100.)

Contexts

Breach of fiduciary duty has been applied in many contexts. Here are a few.

• The prohibition against purposeful below-cost sales. (Bus. & Prof. Code § 17043.) "‘Article or product' includes any article, product, commodity, thing of value, service or output of a service trade.’ (Bus. & Prof. Code § 17024.)
• The prohibition against loss leaders. (Bus. & Prof. Code § 17044.)
• Secret rebates. (Bus. & Prof. Code § 17045; G.H.I.I. v. MTS (1983) 147 C.A.3d 256, 271; ABC Internat. Traders, Inc. v. Matsushita Electric Corp. (1997) 14 Cal.4th 1247.)
• Locality discrimination. (Bus. & Prof. Code § 17040; G.H.I.I. v. MTS (1983) 147 C.A.3d 256, 271.)