Publications

Illinois Financial Institutions Face Claims Under California's Broad Consumer Protection Statute
05/15/2003

Recently, members of the Illinois plaintiffs' bar employed a new tool in their arsenal of consumer fraud claims against financial institutions - a complaint alleging violations of California's ubiquitous unfair competition law. Section 17200 of the California Business and Professional Code ("Section 17200") was enacted years ago by the California legislature as the intended cornerstone of California's consumer protection law. The law contains broad standing and liability provisions which make it an exceptionally attractive cause of action for the plaintiffs' bar. Not surprisinglly, section 17200 has become a litigation "black hole" in California that supplants other causes of action and other procedural rules. Its recent use in Illinois signifies an alarming trend for financial institutions which have operations in California or which service the accounts of California residents.

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