Companies or people can be taken to court for misleading advertising or for breaking laws that protect the public’s health or safety. These lawsuits about unfair business practices can be filed by the government or by any individual. Anyone can file this kind of lawsuit on behalf of the public.
Change the rules about who can file lawsuits about unfair business practices. Only government lawyers could file these lawsuits on behalf of the general public. Private individuals could sue only if they had been injured and lost money or property.
Effect on government spending: |
State and local governments get penalty money for cases they win in court. That money can now be spent on any kind of government program. With Prop 64, penalty money won from cases about unfair business practices could only be spent on enforcing laws that protect consumers.