California Daily Journal
3 minute read | January.20.2016
California recently enacted Senate Bill 386. Under existing law, the Consumer Legal Remedies Act, prohibits unfair methods of competition, acts, or practices by any person that either is intended to result of results in the sale or lease of goods or services. The purpose of the CLRA is "to protect consumers against unfair and deceptive business practices and to provide efficient and economical procedures to secure such protection."
SB 386 added another prohibition to the current CLRA. Specifically, SB 386 prohibits advertising or offering for sale a financial product that is illegal under state or federal law. This prohibition includes requiring any cash payment for the assignment to a third party of a consumer's right to receive future pension or veteran's benefits.
Originally published in the California Daily Journal; reprinted with permission.