Proposition 64 is an initiative that will reduce the number of
frivolous lawsuits and make California a more attractive place to
do business ““ it will stop lawyers from filing lawsuits when
there are no plaintiffs who allege personal harm.
Currently, lawyers can sue any business for “unfair
competition,” even if they do not have a client who claims to
have been harmed by the business.
Some lawsuits of this type have merit, such as suits which
prevented supermarkets from changing expiration dates on old
meat.
But many of these lawsuits are brought by unscrupulous lawyers
who know a small business cannot fight the suit and will instead
simply pay a settlement. Sometimes, the business has done nothing
wrong, and no one has been harmed ““ but the lawyer knows he
or she can squeeze the owner for money.
Proposition 64 will prevent this type of lawsuit by requiring
that there either be a specific plaintiff alleging harm, or that
the suit be brought by the California attorney general or local
prosecutors.