Cal. Court of Appeal Says Party Who Received the Benefit of the Bargain Lacks UCL Standing

In Kwikset Corp. v. Superior Court, __ Cal.App.4th __ (2009), the Fourth District Court of Appeal denied relief under the UCL for a party who purchased Kwikset locks but claimed it was misled by Kwikset’s “Made in U.S.A. label”.  The Court of Appeal stated:

Absent a showing of some complaint about the cost, quality, or operation of the mislabeled locksets they purchased from petitioners, real parties received the benefit of their bargain and are not entitled to any restitution. 

Holdings like Kwikset show why UCL claims based on the FDCPA are difficult to maintain — an unfair debt collection practice used to collect money the consumer owes arguably does not deprive the consumer of money or property which the consumer was entitled to keep.  See, Hyman, “California’s Unfair Competition Law Does Not Confer Enhanced Remedies for Unfair Debt Collection Practices, 8 Cons. Fin. Serv. L.R. #19 (2005)