On February 25, 2009, a California appellate court issued an important decision for businesses defending against claims under California’s Unfair Competition Law, Cal. Bus. & Prof. Code § 17200 et seq. (“UCL”). Prior to the passage of Proposition 64, which amended the UCL to require consumers to demonstrate “injury in fact” and “lost money or property” in order to have standing to assert a UCL claim, California was long known as a shakedown state. After the court’s decision in Kwikset Corp. v. Superior Court, No. G040675 (Feb. 25, 2009), that reputation may become less deserving.

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