Assembly Bill 1366 will let the state attorney general pursue disgorgement, or repayment of ill-gotten gains, in cases where companies violate unfair competition or false advertising laws. The money recovered would go into the new fund.
“When a predatory business takes advantage of a consumer, it’s only right that the proceeds gained from illegal conduct should go towards compensating victims rather than remaining in the bank accounts of bad actors,” state Assemblymember Brian Maienschein, a Democrat from San Diego who authored the legislation, said after the governor signed it in October.
In his legislation, Maienschein cited huge judgments won by the attorney general’s office in which victims received little to no compensation. They included a $1.1 billion judgment against Corinthian Colleges over predatory marketing and lending tactics and a $20 million judgment against Paul Blanco’s Good Car Co., a chain of auto dealerships, over violations of false advertising and other consumer protection laws.