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10 Cal. W. L. Rev. 161 (1973-1974)
The California Consumers Legal Remedies Act

handle is hein.journals/cwlr10 and id is 179 raw text is: The California Consumers Legal Remedies Act The California legislature's contribution to the consumer pro- tection bandwagon is the Consumers Legal Remedies Act.' An innovation in the field of consumer legislation, the CLRA opens the door to consumer class action suits against certain merchandis- ing frauds while eliminating the rigorous burden of proof required by common law. The CLRA is not intended as a consumer wea- pon; it seeks to balance the interests of the consumer with the interests of the merchant, so its tenor is conciliatory rather than punitive. Thus, the Act does not ignore the merchant who may be the target of an economically devastating class action. While the class action is necessary for adequate consumer protection, the CLRA relies on the principle that its power can not go un- checked. The major restraint placed by the CLRA on the class action suit is its emphasis on settlement. The Act stipulates that the class must first give an allegedly wrong-doing merchant the oppor- tunity to make an out of court settlement before legal proceedings can begin. Presumably, the merchant will settle with legitimate claimants, thereby saving himself court costs and further damage to his business reputation.2 But while protecting the merchant from needless lawsuits, the Act imbues the consumer's out of court bargaining agreement with a quasi-judicial demeanor. Thus, with the silent backing of the courts, consumer demands for cor- rection are bound to be taken more seriously by the potential defendant. However, in its attempt to maintain a consumer-merchant bal- ance, some of the CLRA's provisions are self-defeating. For ex- ample, the Act defines the class too narrowly; by excluding certain consumer groups, the balance is tipped in the merchant's favor. Further, the rigid statute of limitations may operate unfairly against the consumer, and untimely preliminary hearings may prejudicially tip the scale to the detriment of either the consumer or the merchant. The purpose of this Comment is to highlight these inadequacies in the Act, for if they are corrected, the CLRA will truly protect the California consumer without exposing the merchant to undue liability. 1. CAL. Cv. CODE §§ 1750-84 (West 1973). 2. Unfortunately, the protection of business reputation provides no impetus for settlement in low-income areas. Many reputable businesses avoid these high-risk communities or red areas, thereby leaving the way open to inde-

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