Below-Cost Pricing Law In California

Below-cost pricing claims in California – the 12th largest economy in the world by some accounts – can be a trap for companies that are unfamiliar with the law. Developed during the Great Depression, the below-cost provisions of California’s Unfair Practices Act, or “UPA,” are similar in some respects to the Robinson-Patman Act, but the differences are worth knowing if you are doing business there. Howard Ullman, attorney in the antitrust and competition practice at Orrick, Herrington & Sutcliffe, outlines what companies need to know to minimize exposure.