What is the Consumers Legal Remedies Act (CLRA)?

Introduction

The CLRA protects California consumers from unfair methods of competition and unfair or deceptive acts or practices in the sale or lease of goods or services for personal, family, or household use. If you were harmed by such conduct, you may have a claim for damages and other relief. Civ. Code §§ 1770, 1780.

Scope and Prohibited Practices

The CLRA prohibits 27 distinct unfair or deceptive acts and practices in consumer transactions. These include misrepresenting the characteristics, uses, or benefits of products or services, concealing material information, using unconscionable contract terms, or advertising with intent not to sell as advertised.

Civ. Code § 1770(a); Rubenstein v. The Gap, Inc., 14 Cal. App. 5th 870, 880–81 (Ct. App. 2017).

Essential Elements of a CLRA Claim

To prevail, a consumer must show:

1. Acquisition or attempted acquisition of goods or services for personal, family, or household purposes;

2. Engagement by the business in one or more prohibited practices;

3. Harm to the consumer; and

4. A causal connection between the prohibited practice and the harm.

Civ. Code § 1770; Veera v. Banana Republic, LLC, 6 Cal. App. 5th 907, 916 n.3 (Ct. App. 2016).

Reliance and Materiality

If your claim is based on a misrepresentation, you must show reliance—that the false statement was a substantial factor in your decision, but not necessarily the sole reason. Material facts allow courts to infer reliance if a reasonable consumer would find those facts important in their decision.

Nelson v. Pearson Ford Co., 186 Cal. App. 4th 983, 1022 (Ct. App. 2010); Collins v. eMachines, Inc., 202 Cal. App. 4th 249, 256 (Ct. App. 2011).

Remedies Under the CLRA

With a successful CLRA claim, consumers may recover:

• Actual damages, including increased costs or non-pecuniary harm;

• Punitive damages;

• Equitable relief (such as injunctions or restitution);

• Attorney’s fees to a prevailing plaintiff.

Civ. Code § 1780(a); Hansen v. Newegg.com Americas, Inc., 25 Cal. App. 5th 714, 724 (Ct. App. 2018).

Class Actions

The CLRA allows for class actions. In such cases, the named plaintiff’s reliance must be proved, but if all class members have been exposed to the same material misrepresentations, class-wide reliance can be inferred unless rebutted by the defendant.

Civ. Code § 1781; Vasquez v. Superior Court, 4 Cal. 3d 800, 814–15 (Cal. 1971); Massachusetts Mut. Life Ins. Co. v. Superior Court, 97 Cal. App. 4th 1282, 1293 (Ct. App. 2002).

Practical Guidance for Consumers

• Document all product/service representations, contracts, and advertisements related to your purchase or lease.

• Retain communications and note omissions or questionable contract terms.

• Seek legal counsel (e.g., myself) if harmed by deceptive business practices—the law covers more than just fraud.

• Understand your rights to actual damages, punitive damages, and attorney’s fees.

Bottom Line

The CLRA is a powerful tool protecting California consumers from unfair and deceptive practices—misrepresentations, concealments, unconscionable contract terms, and more.

Citations

Civ. Code §§ 1770, 1780, 1781; Rubenstein v. The Gap, Inc., 14 Cal. App. 5th 870 (Ct. App. 2017); Nelson v. Pearson Ford Co., 186 Cal. App. 4th 983 (Ct. App. 2010); Collins v. eMachines, Inc., 202 Cal. App. 4th 249 (Ct. App. 2011); Hansen v. Newegg.com Americas, Inc., 25 Cal. App. 5th 714 (Ct. App. 2018); Veera v. Banana Republic, LLC, 6 Cal. App. 5th 907 (Ct. App. 2016); Vasquez v. Superior Court, 4 Cal. 3d 800 (Cal. 1971); Massachusetts Mut. Life Ins. Co. v. Superior Court, 97 Cal. App. 4th 1282 (Ct. App. 2002).