The bill's adjustments have implications for the enforcement of consumer protection laws in California. By specifying how fines are distributed when actions are brought against violators, it clarifies the educational use of penalty proceeds. After enforcement actions, half the collected penalty will be allocated to the county treasurer where the judgment occurred, while the other half goes to the General Fund, contributing to state operations.
Assembly Bill 1201 is an amendment to Section 17206 of the Business and Professions Code, primarily aiming to refine existing regulations surrounding penalties for unfair competition. This bill defines 'unfair competition' to include fraudulent business practices, deceptive advertising, and false representations. Under the current law, individuals engaging in unfair competition are subject to civil penalties, which can reach up to $2,500 for each violation. AB1201 does not introduce new penalties; instead, its main objective is a nonsubstantive clarification of existing provisions.
As AB1201 primarily makes nonsubstantive changes, there may be limited points of contention directly surrounding the bill itself. However, discussions around unfair competition laws generally invoke stakeholder interests, particularly from businesses concerned about regulatory burdens. Some industry groups may argue that any modification—no matter how small—should be viewed critically, especially if they believe the changes could contribute to more aggressive enforcement of existing laws against them.