Landmark California Ruling Empowers Nonprofits, Unions and Advocacy Groups to Combat Unfair Business Practices

The California Supreme Court recently delivered a landmark ruling in California Medical Association v. Aetna Health of California Inc., setting a precedent that could redefine standing in unfair competition law cases. The ruling clarified the criteria for injury and standing under California’s Unfair Competition Law (UCL). The court held that nonprofit organizations, such as the California Medical Association (CMA), have standing to sue if they incur costs in response to perceived unfair competition that threatens their bona fide, preexisting mission, even if the expenditures are independent of costs related to litigation.