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S.B. 239

             1     

UNFAIR COMPETITION ACT

             2     
2004 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Mike Dmitrich

             5     
             6      LONG TITLE
             7      General Description:
             8          This bill enacts the Unfair Competition Act within the Commerce and Trade Title.
             9      Highlighted Provisions:
             10          This bill:
             11          .    defines unfair competition;
             12          .    provides that the attorney general may bring an action for unfair competition; and
             13          .    provides a private right of action for a person injured by unfair competition.
             14      Monies Appropriated in this Bill:
             15          None
             16      Other Special Clauses:
             17          None
             18      Utah Code Sections Affected:
             19      ENACTS:
             20          13-5a-101, Utah Code Annotated 1953
             21          13-5a-102, Utah Code Annotated 1953
             22          13-5a-103, Utah Code Annotated 1953
             23          13-5a-104, Utah Code Annotated 1953
             24     
             25      Be it enacted by the Legislature of the state of Utah:
             26          Section 1. Section 13-5a-101 is enacted to read:
             27     
CHAPTER 5a. UNFAIR COMPETITION ACT


             28          13-5a-101. Title.
             29          This chapter is known as the "Unfair Competition Act."
             30          Section 2. Section 13-5a-102 is enacted to read:
             31          13-5a-102. Definitions.
             32          As used in this chapter, "unfair competition" includes:
             33          (1) any unlawful, unfair, or fraudulent business act or practice;
             34          (2) unfair, deceptive, untrue, or misleading advertising; and
             35          (3) any act leading to a diminution in value of intangible property.
             36          Section 3. Section 13-5a-103 is enacted to read:
             37          13-5a-103. Action by attorney general.
             38          (1) The attorney general may bring an action against any person who engages, has
             39      engaged, or proposes to engage in unfair competition.
             40          (2) In an action under Subsection (1), the court may:
             41          (a) make any order or judgment necessary to:
             42          (i) prevent a person from engaging in unfair competition; and
             43          (ii) provide a person actual damages incurred through unfair competition; and
             44          (b) impose a civil penalty not to exceed $5,000 for each act of unfair competition.
             45          (3) All civil penalties paid pursuant to this section shall be deposited in the Consumer
             46      Protection Education and Training Fund created in Section 13-2-8 .
             47          Section 4. Section 13-5a-104 is enacted to read:
             48          13-5a-104. Private action.
             49          (1) A person injured by an act of unfair competition may bring an action against a
             50      person who engages in an act of unfair competition.
             51          (2) In an action under Subsection (1), a person injured by an act of unfair competition
             52      may recover:
             53          (a) actual damages;
             54          (b) costs and attorney fees; and
             55          (c) if the court determines that the circumstances are appropriate, punitive damages.





Legislative Review Note
    as of 2-13-04 10:33 AM


This bill prohibits business practices that are unfair or lead to a diminution in value of
intangible property, raising the issue of the prohibition against restraining trade or commerce in
Article XII, Sec. 20 of the Utah Constitution.

Office of Legislative Research and General Counsel


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