Unfair Trade PracticesOffenses Against the Chapter
Section § 17040
This law makes it illegal for someone involved in making or selling widely-used products to intentionally harm or eliminate a competitor or stop someone from entering the market by unfairly offering different prices in different locations. However, it’s okay to offer competitive prices in good faith, as long as it’s a fair response to another competitor’s pricing.
Section § 17041
This law says it's okay for businesses to charge different prices in different locations if the differences are justified by varying costs. These costs could be for making, selling, or delivering the product, or because of transportation expenses based on where the product comes from or is going.
Section § 17042
This law allows businesses to choose who they want to sell to and to classify their customers as brokers, jobbers, wholesalers, or retailers. It also permits businesses to charge different prices to customers in these different categories, if they choose.
Section § 17043
This law makes it illegal for businesses to sell products at a loss or give them away to harm competitors or wipe out competition. Basically, you can't undercut prices to intentionally drive your rivals out of business.
Section § 17044
This law makes it illegal for businesses in the state to sell or use a product below its cost with the intention of attracting customers, which is known as a "loss leader."
Section § 17045
This law makes it illegal to secretly give special deals or benefits to certain customers if it harms competitors and undermines fair competition. These could include secret rebates, refunds, extra commissions, or other unearned discounts. The aim is to ensure all buyers on similar terms get treated equally, so no unfair competition occurs.
Section § 17046
Section § 17047
This law makes it illegal for any business involved in selling goods—whether they're a manufacturer or a retailer—to encourage someone to break any rules outlined in this chapter.
Section § 17048
This law makes it illegal for anyone involved in selling or distributing goods, like manufacturers or retailers, to work together with others to break the rules set out in this chapter.
Section § 17048.5
This law makes it illegal for any company or person that sells products, like manufacturers or retailers, to have a service or repair business fix their products under warranty for less than it costs the repair business to do the work.
Section § 17049
This law prevents businesses from using tricks like special discounts, side deals, or any other strategies to unfairly sell products cheaper than the cost or discriminate based on location, bypassing the law's intent.
Section § 17050
This law explains situations where businesses can sell products at discounts that are normally restricted. It allows exceptions for sales when closing a business, selling seasonal or perishable goods, selling damaged items, or when a competitor has similar prices. Court-ordered sales and sales by manufacturers to meet competitors' prices are also exempt. For all these exceptions, sellers must inform the public and clearly mark the discounted items with reasons for the sale.
Section § 17051
If someone signs or agrees to a contract that breaks the rules of this chapter, that contract is not legal, and you can't enforce or get anything from it.